Deutschehafr Gesellschaft f�r Technische Zusammenarbeit (GTZ) GmbH by 36uErjO

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									      Deutschehafr Gesellschaft für Technische Zusammenarbeit
                            (GTZ) GmbH

      Economy and employment promotion in Kosovo




      POTENTIAL ANALYSES IN LINE WITH
      METALWORKING SECTOR IN KOSOVO
                             March 2007




Prepared and submitted by
Dipl.Eng. Gëzim Zeka
Free Lancer

for

Deutschehafr Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH
Project Office
Prishtina/KOSOVO
I would like to express my utmost appreciation for the
trust and confidence the company owners of Metalworking
companies in Kosovo for their full support and commitment
during the conduct of the Potential Analysis in line with
Metal Processing Sector in Kosovo.

To the various institutions and organizations who gave us
the opportunity to do research and be able to collate
information regarding the Metalworking industry namely:
Department of Industry (MTI), Kosovo Chamber of
Commerce, UNMIK Custom Services, Kosovo Statistical
Office, Alliance of Kosovo Businesses.

                                       On behalf of GTZ
                                    Dipl.Eng. Gëzim Zeka




                                                        2
                          TABLE OF CONTENTS
                                                                       Page
Chapter 1
INTRODUCION
1.0  RATIONALE                                                         6
1.1  COVERAGE                                                          8

Chapter 2
2.0   OVERVIEW OF METALWORKING INDUSTRY                                9
2.1   ECONOMICAL ENVIRONMENT OF METALWORKING INDUSTRY                  10
      2.1.1 Government support                                         10
      2.1.2 Tax System                                                 13
      2.1.3 Trade Policy Promoting Local Production and Exports        13
      2.1.4 Legal Framework                                            14
      2.1.5 Privatization Opportunities                                15
      2.1.6 Customer Legislation                                  16

Chapter 3
3.0   DEFINITION OF METALWORKING SECTOR                                18

Chapter 4
4.0   PROFILE OF METALWORKING INDUSTRY                                 19
      4.0.1 Classification by Proprietorship                           20
      4.0.2 Classification by Number of Employees                      21
      4.0.3 Classification by Annual Turnover                          21
4.1   TECHNOLOGY                                                       21
      4.1.1 Underutilization of capacities                        22
4.2   ORGANIZATION                                                     22
      4.2.1 Systems and Procedures                                     24
      4.2.2 Basic Documents (Documentation)                       24
4.3   MANAGEMENT                                                       25
      4.3.1 Manpower                                                   25
4.4   MARKETING AND EXPORT PRACTICES
      28
      4.4.1 Marketing Practices                                        28
      4.4.2 Export Practices                                           28
4.5   QUALITY MANAGEMENT                                               29
4.6   MATERIALS MANAGEMENT
      31
4.7   FACILITIES                                                       31
4.8   SUPPLY OF RAW MATERIALS                                          31
4.9   FINANCIAL MANAGEMENT
      32

Chapter 5
5.0   GROUPING   BY ACTIVITIES (TECHNOLOGIES & PRODUCTS)
           33
5.1   GROUPING   BY EXPOR POTENTIALS                                   34
5.2   GROUPING   BY POTENTIALS FOR NEW INVESTMENTS
      35
5.3   GROUPING   BY POTENTIALS FOR CLUSTER DEVELOPMENT
      36


                                                                              3
5.4   GROUPING BY POTENTIALS FOR SUPPLY CHAIN                         38

Chapter 6
6.0   INNOVATION ATTRACTIVENESS AND PORTFOLIO ANALYSIS
            40
      6.0.1 Shortcomings in R&D management                       40
      6.0.2 Measures to be undertaken                                 41
6.1   INNOVATION ABILITIES                                            42
      6.1.1 Portfolio analysis of innovation abilities                42
            to export generation

Chapter 7
7.0   IDENTIFICATION OF PROBLEMS
            44
      7.0.1 Financing                                                 45
      7.0.2 Lack of technology and process oriented structure         45
      7.0.3 Raw materials shortages                                   45
      7.0.4 Product diversification                                   46
      7.0.5 Inability to meet export markets                          46
      7.0.6 Shortcomings in R&D management                       46
      7.0.7 Other problems                                            46
7.1   EVALUATING PROBLEMS AND SOLUTIONS                               47

Chapter 8
8.0   SUMMARY OF RECOMMENDATIONS                                      48
      8.0.1 Addressed to Companies                                    48
      8.0.2 Addressed to GTZ                                          48




APPENDICES

ANNEX   1.   KCC Portfolio of Metalworking Companies in Kosovo        50
ANNEX   2.   Profile of surveyed companies                            53
ANNEX   3.   Table 6                                                  63
ANNEX   4.   Table 7                                                  69
ANNEX   5.   Table 11                                                 80




                                                                           4
                               LIST OF TABLE

Table   #                        Title                                                 Page
1           Contact Information of Major Business Supporting
            Organizations in Kosovo                                          …….       12
2           Kosovo Tax System                                                …….       13
3           Distribution of SOEs across Different Economic Sectors …….       15
4           Custom Legislation                                               …….       16
5           Overview Chart of Present Key Organizational Positions …….       23
6           Grouping of companies by products (annex 3)                      …….       63
7           Grouping of companies by technologies/processes (annex 4)        …….       69
8           Grouping of companies by export potentials                       …….       34
9           Grouping of companies by potentials for new investment …….       36
10          Grouping of companies by potentials for supply chain             …….       38
11          List of companies in process of export negotiations              …….       80




                               LIST OF FIGURE

Figure #                          Title                                                Page
1           Overview of present basic organizational structure               .......   23
2           Process oriented organization structure                          …….       24
3           Overview of the quality insurance tools usage                    .......   29
4           Cluster model of producing the electric motor                    .......   37
5           Cluster model of producing the water cooled chillier
            for air conditioning systems                           .......   37
6           Portfolio analysis of innovation abilities to export
            Generation                                                       .......   43
7           Problem-and-effect diagram                                       .......   44
8           Expert findings for evaluating problems                          .......   47
9           Expert findings for evaluating solutions                         .......   47




                                                                                              5
                                Chapter 1



INTRODUCTION

1.0   RATIONALE

      The overall goal of GTZ Economy and Employment Promotion in
      Kosovo is for private enterprises and (potential) start-ups improve
      their knowledge and experience in business management and to get
      entrance in new markets.

      The GTZ Economy and Employment Promotion in Kosovo did an
      analysis of metalworking sector in 2004 by an international short-
      term expert in order to elaborate a conception of possible project
      contents.    The analysis is based on facts extracted from 7
      metalworking companies in Kosovo and identified export potentials
      in this sector.   During the period 2005/2006, the project has
      undertaken several activities to find out export markets for products
      that belong to this sector but results were very weak. Due to this
      reason, the GTZ acknowledges the fact that there is a need for a
      comprehensive study with wider range of metalworking companies, in
      order to recognize real problems and existing potentials and
      potentials for further development, dedicated for export and/or
      import substitution.

      The study in general, assessed and measured the basic performance of
      the metalworking sector throughout Kosovo, and includes an
      overview of actual status (analytical part) and development potentials
      (strategic part).

      The expert selected 30 companies throughout Kosovo which
      potentials for improvement of their knowledge and experience in
      business management were more emphasized to get entrance in new
      markets, then an in-depth study of selected companies were
      implemented.

      Such includes assessment of the actual capacities:
         technical-technological
         managerial


                                                                           6
      organizational
      marketing
      human resources
      procurement and
      financial.

and assessment of potentials and grouping by:
   activities (technologies & products)
   development innovations
   export
   new investments
   cluster development and
   supply chain.

Likewise, assessments were made at the plant level, also including
machine and equipment used.

This study is dived into four (4) major parts:

In the first part (chapter 2 and 3) the metal processing industry in
Kosovo is analyzed by using official data sources. First we present an
overall outlook of the industry present status and generally the
business environment in Kosovo (measures undertaken by the Kosovo
Government for supporting the metal industry, strategies, custom
legislation and facilities, trade policies promoting local production
and exports, taxation system, investment opportunities, legal
framework, privatization opportunities, future plans, etc.). Then we
define the sector according to NACE 3 digit industry, also the sector
profile.

In the second part (chapter 4) the metal processing industry in
Kosovo is analyzed by using companies as data source. First we
present classification by proprietorship and size, then actual situation
of technical-technological capacities, organization and management,
marketing and export practices, human resources, quality
management, materials management, facilities, supply of raw
materials and financial management.

In the third part (chapter 5) we did a grouping of surveyed companies
by types of

      activities (technologies & products)
      potentials for export,
      potentials for new investments



                                                                       7
          potentials for cluster development
          potentials for supply chain


      Also the study portrays the portfolio analysis of the development
      innovations (technical-technological, organization and management,
      marketing, quality, human resources, supply and finance) related to
      export (chapter 6). Last part (chapter 7) contains problems identified
      and recommendations of the expert for the perspective of the metal
      processing sector in Kosovo in order to elaborate a conception of the
      GTZ project contents.


1.1   COVERAGE

      The report focuses on the metalworking companies in Peja, Gjakova,
      Prishtina, Prizren, Rahovec, Vushtri, Malisheva, Ferizaj, Viti,
      namely:

                1.     Arda Rei Energoinvest, NewCo.
                2.     Elsam, NewCo.
                3.     Kuk Comerc.
                4.     Llamkos, NewCo.
                5.     Meridian Energoinvest, NewCo.
                6.     Osa Termosistem, NewCo.
                7.     Vegeltorja Plus, NewCo.
                8.     Vinex, NewCo.
                9.     Gorenje Elektromotori
                10.    Kosova Steel, NewCo.
                11.    TIMI-Kosova, NewCo.
                12.    Inter Steel
                13.    Daija Metal
                14.    Fabrika e radiatorve, NewCo.
                15.    Gorenje Niti-Tiki
                16.    Asllani
                17.    Feral
                18.    Metali
                19.    Jakova
                20.    Fonderia Argoni
                21.    Ben Com
                22.    Alu Metal
                23.    Flame
                24.    Frigoterm
                25.    Eko
                26.    Shllaku
                27.    Tekniku
                28.Lux Special
                29.Torno



                                                                           8
                           30.        Merkuri Company

                                                   Chapter 2



2.0        OVERVIEW OF METAL WORKING INDUSTRY

           The economy of Kosovo is passing through critical stages of reforming
           and restructuring. Temporal self-governing Institutions are giving
           their best trying to develop the right legal and appropriate regulative
           that will help in creation of environment and conditions for faster
           economical development and social well-being of the country. Even
           though there’s still a lot to do, the progress has started. The economy
           is slowly developing, but resistantly. The process of making social and
           public entertainments into private ones is accelerating, which is
           supporting reactivation of a number of industries through
           investments in private sector. The existing rather liberal commercial
           policy as well as the arrangements of the available trade with other
           countries in Balkan, have made Kosovo an open market for
           international competition.

           Historically Kosovo’s economy was concentrated in extractive
           industry, production of non-final materials, semi-final agricultural
           products. Heavy industries in Kosovo were (and still are) largely state-
           own enterprises. Though the industrial sector in Kosovo has been
           mostly stagnant since the 1999 conflict, it is still suffering the
           consequence for the neglect of the old inoperative industrial
           complexes. There are 43 metal working SOEs under an ongoing
           process of privatization.

           Pre-war statistics show that mining and metals processing were
           important activities in Kosovo with state or socially owned
           enterprises, but they were starved of investment, and production
           techniques were outdated. Actually the Kosovo metal industry has
           become in itself an important contributor to the economy of Kosovo
           driven by private sector. Although statistics on the metal processing
           industry are incomplete and unreliable, data of exports by commodity
           groups as at 31 Oct 2006 show that metals generally and scrap
           represent 33, 6% of the total export while import only 5,8% of the
           total import1.




1
    Source: SOK, Series 3 – Economic Statistics, Foreign trade statistics


                                                                                  9
2.1   ECONOMICAL ENVIRONMENT OF METALWORKING INDUSTRY

      2.1.1 Government support

      Government has drawn up the Kosovo Development Strategy and
      Plan (KDSP), a process led by the Prime Minster’ Office and the Inter
      Ministerial Group, supported by international organizations and the
      donor community. This process is coordinated by the KDSP
      Secretariat which was established in January 2006. The KDSP set
      out the development strategy for Kosovo for the period 2007-2013
      covering:

         The long term vision
         Sectoral and cross-cutting strategies
         The macroeconomic framework.




                                                                         10
The Kosovo Government is giving particular attention to the private
sector development recognizing its vast potential for growth and
development. The metalworking industry still is dominated by the
SOEs which ownership is going through transformation to a private
one. As such, unless get a rapid privatization, looks without priority
for the government development strategies.

Expert findings: The metalworking industry needs a particular
strategy for its modernization, design and engineering capability,
upgrading of engineering and technical education and industry
modernization, and promote/improve quality and productivity
upgrading, which will bring the industrialization of the country (refer
to 8.0.2 for recommendation)

The mechanism which institutionally supports the industrial
manufacturing including the metalworking industry is the
Department of Industry, respectively Division of the Industrial
Production Development, within the Ministry of Trade and Industry.
The objective of this department is creation of a suitable environment
for development of strong Kosovo industry and with high competition
abilities in the internal domestic market, in the regional and wider.
Its role is:

     proposes development and restructuring direction of Kosovo
      Industry;
     proposes the direction of development and implementation of
      technical and technologic standards, of industrial ownership
      system and legal metrology in Kosovo;
     proposes measures for a stable industrial development and the
      elimination or decreasing of negative influence of industrial
      departments for environment protection;
     proposes measures for harmonizing, accepting and adaptation
      of technical standards and technical rules from relevant
      institutions in the field of industry;
     participates in compiling the legal and sub legal dispositions in
      the field of industry
     participates     in   law    compilation and    supervises    the
      implementation of laws and other sub legal acts
     observes the implementation of economic policy and its
      influence on the situation and industry development;
     observes work, maintains contacts and cooperates with
      international organizations, specialized agencies and other
      organizations, with the aim of exchanging experiences
      concerning industrial development and other activities from its
      field of activity;


                                                                     11
    cooperates with other state administration bodies and
     authorized institutions for development of knowledge, scientific
     and researching work of technologies
    proposes measures and instruments that enable technical and
     technology transfers and application of innovations;

Besides the Kosovo Government, other organizations can also provide
relevant information and business support services. Their contact
details are provided in the table below.

Table 1. Contact information of major business supporting organizations in
Kosovo




2.1.2 Tax System




                                                                             12
Taxes in Kosovo are very low compared to those of any of its
neighbours. The tax system has been kept extremely simple. There are
few taxes and compliance is straightforward. Furthermore, the
Government is introducing tax incentives to support domestic
production.

Table. 2 Kosovo Tax System




2.1.3 Trade Policy Promoting Local Production and Exports

Kosovo is an independent customs entity with a liberal trade regime.
The general tariff rate is currently at 10% for imports and 0% for
exports. Tariff rates for capital goods and a wide range of


                                                                  13
intermediary goods are also 0%. With these policies, Kosovo is
certainly the most advantageous tax environment in the wider region.

Currently, Kosovo has a Free Trade Agreement (FTA) with Albania
and with Bosnia and FYROM. Negotiations are ongoing to sign Free
Trade Agreement with Croatia. Trade with Serbia and Montenegro is
at present equally free, and the 1996 FTA between Yugoslavia and
FYROM is applied on an interim basis. Kosovo has committed itself
to sign FTAs with all Western Balkan countries under the Stability
Pact framework. Following that process, Kosovo will become part of
a regional free trade area of over a hundred million people.

You can find the full texts of the agreements on Free Trade,
Investment Protection, Avoidance of Double Taxation as well as other
policy and legal documents, reports and analyses in the
Documentation section of the website (www.euinkosovo.org).

Kosovo enjoys non-reciprocal, customs-free access to the EU market,
as stipulated by the EU Autonomous Trade Preference (ATP) Regime
(Council Resolution (EU) 2007/2000). Quantitative and qualitative
restrictions remain in force only for a very limited number of goods.
Investors thus enjoy unlimited access to the EU market and the
benefits of Kosovo's low-tax environment, low labour costs and
payroll taxes, and they have access to a pool of young and motivated
workers.

2.1.4 Legal Framework

The legal system is continental (Austro-Hungarian tradition), with
recent amendments through Regulations and Laws. Since the
beginning of the UNMIK administration in Kosovo in 1999, a number
of regulations/laws have been adopted to support the development of
a modern and competitive market economy. With assistance from
experts from the EU and other countries, Kosovo has created a
modern legal framework.

Regulations and administrative directions are available on UNMIK's
website (www.unmikonline.org). In the following table we singled out
some of the essential economic laws and regulations impacting
businesses:

Regulation   No.   1999/3    Currency permitted to be used
Regulation   No.   2001/6    Business organizations
Regulation   No.   2001/3    Foreign investment
Regulation   No.   2001/27   Essential labour law in Kosovo
Regulation   No.   2004/1    Customs Code


                                                                   14
Regulation   No.   2000/20      Tax administration and procedures
Regulation   No.   2000/2       Excise taxes
Regulation   No.   2000/29      Presumptive tax
Regulation   No.   2001/11      Value Added Tax
Regulation   No.   2002/3       Profit taxes
Regulation   No.   2002/4       Personal income tax
Regulation   No.   2003/15      External trade activities

2.1.5 Privatization Opportunities

Process of privatization of SOEs, being administered by Kosovo Trust
Agency (KTA), with the UNMIK regulation no. 2002/12, with the aim
of preserving or enhancing the value, viability, and corporate
governance of SOEs in Kosovo, have been started in 2002

Privatisation offers excellent opportunities to both domestic and
foreign investors to obtain access to valuable natural resources,
production facilities with infrastructure, land, equipment and entire
enterprises with trained and skilled employees.

Table 3. Distribution of SOEs across Different Economic Sectors




Up to date, 219 former Socially Owned Enterprises (SOEs) have been
privatized whilst there is no available sector specific statistics which
could show how many of them are metalworking companies.



                                                                      15
                 From the group of surveyed companies, almost half (43%) are recently
                 privatized SOEs, so called New Companies (NewCo).

                 2.1.6 Custom Legislation

                 Pursuant to Regulations and Customs Code, goods that are designated
                 for Kosovo (with some exceptions) are subject to 10 % customs taxes
                 and 15 % VAT. Specific goods (cigarettes, alcohol etc) are subject to
                 excise tax which is specified in the annex of the Regulation 2006/8.

                 Table 4. Major Regulations for each specific tax, Customs Code, Instructions of
                 the Director General and other laws on customs


 Reference                                                   Title                               Date of entry into force

Administrative
                      2004/24                For exemption from customs duties                         14/09/2004
  Direction

 Regulation           2004/1                        Kosovo Customs Code                                01/03/2004

 Regulation           2006/4                From exemption from customs duties                         01/02/2006

                                                        For VAT taxes

 Regulation          2002/17                       For Value on Added Tax                              01/08/2002

                                                      For excise taxes

 Regulation           2005/32                             Excise code                                  01/07/2005

 Regulation           2006/8                           For excise taxes                                01/04/2006

                                                            Others

 Regulation           2006/2                For prohibition and limitation of import                   19.01.2006

                                 Internal administrative instructions by UNMIK Customs
                                   Service Director General implementing the Customs
                                                           Code

    I.A.D.             UA 21                  Instruction for stop & search rights                     18.04.2003

    I.A.D.             UA 42                          Temporary import                                 01.10.2004

    I.A.D.          UA 02-2004               Value of goods for customs purposes                       06.04.2004

                                 Explanatory notes for amendment of the single administrative
    I.A.D.          UA 03-2004                                                                         06.04.2004
                                                          document

    I.A.D.          UA 05-2004                            On transit                                   05.07.2004

                                 Setting the rules of applying the stock exchange in the value
    I.A.D.          UA 06-2004                                                                         07.06.2004
                                                            of goods
                                 Setting the declarations and documents to be submitted with           07.06.2004
    I.A.D.          UA 07-2004
                                                     a customs declaration

    I.A.D.          UA 08-2004          Setting the provisions for customs procedures                  10.06.2004




                                                                                                                  16
I.A.D.      UA 09-2004                   Instrument of delegation                     04.11.2004

                         Setting the time limits and procedures for exemptions from
I.A.D.      UA 04-2005                                                                01.09.2005
                                                   payments

I.A.D.      UA 06-2005            Providing for reliefs for returnsed goods           07.12.2005

I.A.D.      UA 01-2006       Tax Warehouse and Warehousekeepers excise tax            31.12.2005

I.A.D.      UA 03-2006             Roads and time for entering in Kosovo              03.03.2006



         Kosova’s customs code has established several trade facilitation
         instruments. For example:

              Bonded Warehousing, providing possibility to store imported
               goods under customs control who having to pay any duties until
               goods are released for sale in domestic market or re-exported to
               other markets.
              Inward Processing Relief, providing the possibility of
               importing foreign goods with the total conditional relief from
               customs duties and taxes, processing them and then re-exporting
               them.
              Processing under customs control.
              Other important instruments are transit, temporary admission,
               and binding information.




                                           Chapter 3



 3.0     DEFINITION OF METALWORKING SECTOR



                                                                                               17
      The metalworking industry, otherwise called Engineering Industry,
      represents the entire field of metal manufacture. It is primarily
      concerned with the change of metals to yield useful products and
      machine elements.

      The ‘metal processing industry’ in this study is defined in line with
      the NACE revision 1 classification, division 27, ‘Manufacture of basic
      metals’, plus two sub-sectors of NACE division 28, ‘Manufacture of
      fabricated metal products’, namely 28.4 and 28.5. The relevant sub-
      sectors are given below:

      27 Manufacture of basic metals
          27.1 Manufacture of basic iron and steel and of ferro-alloys
                (ECSC)4
          27.2 Manufacture of tubes
          27.3 Other first processing of iron and steel and production of
                non ECSC ferro-alloys
          27.4 Manufacture of basic precious and non-ferrous metals
          27.5 Casting of metals

      28 Manufacture of fabricated metal products, except machinery and
         equipment
         28.4 Forging, pressing, stamping and roll forming of metal;
              powder metallurgy
         28.5 Treatment and coating of metals; general mechanical
              engineering

      This study covers partially the division 27 (sub-sector 27.5) and the
      complete division 28 as more emphasized groups developed in
      Kosovo.




                               Chapter 4



4.0   PROFILE OF METALWORKING INDUSTRY

      The metalworking industry in Kosovo is largely composed of small
      sized enterprises. The bigger units play a more important role in


                                                                          18
employment and skills upgrading than many other industries.
Specialization has not really been achieved in this industry except in
larger companies and a few small ones because of the highly
fragmented market.

Comparing with other industries, there are a large number of
manufacturing activities in the metalworking industry, varying from
straightforward metal fabrication to general machining jobs. These
involve the processing of metal raw materials into finished products
or components of end products. Production of the metalworking
industry is generally oriented to supplying domestic market although
a few are quite successful in penetrating the export market.

The normally very usual subdivision to products as electrical
appliances, vehicles and so forth is not practical in the case of SME’s
in Kosovo because many enterprises set up numerous different
products and they change the product line fast as soon as a product
line runs badly and/or other products seem to have a better market
chance. In addition the metal industry is less homogeneous - the
possibilities of combination of the basic components, intermediate
and final products are as diverse as those of the production processes.

As at December 2006, the portfolio of Kosovo Chamber of Commerce
consists of 87 metalworking businesses (refer to Annex 1); Prizren
leads with 30% of total number, then Prishtina with 18%, Gjakova
with 17%, Gjilan with 14%, Ferizaj with 12% and Peja with 9%.
Comparing this number with number of surveyed companies (30), the
study represents recent findings of 33% of this sector.

Following is portrayed the profile of surveyed metalworking
companies in Kosovo by proprietorship and size (employees and
annual turnover).

4.0.1 Classification by proprietorship

  A. Private companies established between 1990-2004

  The expert did interview with 20 private companies established
  from 1990 to 2004. These companies mainly deal with services
  and manufacturing of fabricated products like steel structures,
  fences, tanks for petrol and water, gates, smokestacks, cans,
  heating equipment, handicraft products, and metal components by
  order.

  Their market is mainly the domestic one therefore the utilization
  of production capacities depends from the local market demands.


                                                                     19
  Their state is characterized with low technological level, lack of
  human resources, lack of planning skills and low innovation
  capacities.

  These companies have an average of 15 employees and low
  turnover. They face with high costs of imported raw materials,
  competition of imported products, lack of ideas for new products
  especially dedicated for export, lack of qualified manpower and
  insufficient working capital.

  B. New.Co. – Privatized SOEs between 2004-2006

  The expert did interview with 10 NewCo. During 2004-2006
  several metal processing companies were privatised by the Kosovo
  Trust Agency, after having been disused for several years or having
  produced at only minimal capacity. The buyers of the companies
  have often exhausted their financial capacity by acquiring the
  companies and cannot finance substantial investments for
  revitalising the companies. The current undefined status of Kosovo
  leads to scarcity of external finance and unfavourable credit terms.

  Expert findings: comparing with the small private companies, this
  group promises more prosperity and further development for
  export markets. All of them have modern production rooms
  revitalized after the privatization. It is worth mentioning that a
  considerable number of these companies have their own tool
  workshops mainly used for internal needs (refer to 8.0.2 for
  recommendation).



  C. Social Owned Enterprises (SOE)

  This group has not been taken into consideration for this study
  because does not fit to the overall objectives of the GTZ project.

4.0.2 Classification by number of employees

By employees are classified as following:
   up to 15 employees        …………        51%
   up to 50 employees        …………        34%
   over 50 employees         …………        15%

4.0.3 Classification by annual turnover

By annual turnover are classified as following:


                                                                    20
          up to 50.000 €           …………        23%
          up to 500.000 €          …………        68%
          up to 1.000.000 €        …………        9%


4.1   TECHNOLOGY

      The production equipment naturally often was older than 20 years;
      some enterprises had two to five years old machines which had been
      procured second hand from West-European countries. Most frequent
      type of equipment are for various metal-forming operations, such as
      cutting, sawing, roll forming, blanking, flanging, bending, punching,
      drilling, welding, grinding, assembling and finishing.

      Advantages of installed technologies:
      Mainly NewCo have emphasized advantages with regard to the
      technology. About 80% of surveyed NewCO have flexible technologies;
      with few investments can be adapted to new technological structures
      for new products. The equipment is well repaired and maintained
      after the privatization and offers good functionality. The associated
      technical infrastructure (power, water, air, gas) is satisfied. Could be
      undertaken     some     technological   innovations      (rationalization
      measures) with purpose of cost-cutting.

      Weaknesses of installed technologies:
      High maintenance costs, time consumed (long production cycle), no
      quality insurance.

      Recent years most companies (especially NewCo) were concentrated
      on technology consolidation, equipment repair and maintenance,
      infrastructure reconstruction, so there were no efforts and
      investments on refreshing and advancing the technology, preparing
      new development projects, undertaking measures for improvement of
      processes, in order to increase the product quality and
      competitiveness.

      4.1.1 Underutilization of capacities

      A great number of equipment in the various metalworking
      establishments remains idle or simply underutilized.      Available
      equipment is not, therefore, used on regular basis and is left
      unproductive most of the time. This is especially true among small
      establishments where they find it hard to compete with large, more
      efficient firms and limited market.




                                                                             21
      Underutilization of capacity is attributed to the presence of outmoded
      machineries, insufficient market, and insufficient supply of raw
      materials. The fact remains that a poorly utilized machine inevitably
      results in an artificially high capital output ratio.

      Expert findings: developing inter-firm subcontracting schemes with
      manufacturers/assemblers could make production capacities more
      productive (refer to 8.0.1 for recommendation).

      Subcontracting takes on three forms, namely: (1) production of semi-
      finished products, (2) processing of the whole parts, and (3) partial
      processing of parts. In the first form, the partially finished are sent
      out for further processing to finished goods; in the second, the fully
      processed parts are combined to a finished product; and in the third,
      the partially processed parts are changed into fully completed parts.


4.2   ORGANIZATION

      Majority of thirty (30) surveyed companies are family-owned single
      proprietorships with the entire management of the business
      undertaken by the owners.       This means close involvement in
      production, marketing, personnel administration and financial
      management functions.

      Organization of most companies was found wanting in key positions
      needed to run the business activities. These were basically resulting
      from the centralized form of management that owners usually adapt
      (look at Figure 1). Such organization makes possible operation of the
      companies but does not promises a prosperity and growth.

      Figure 1. Overview of present basic organizational structure


                           OWNER/Executive Director



                Supply                                Production



                Sales                                  Finance

                                                            The      expert
      identified key actual positions (look at Table 5) and those believing
      that delegation of task had to be done by the owner to achieve more
      efficient workflow and be able to pinpoint areas of strengths and
      weaknesses in the company processes (look at Figure 2). As far as job



                                                                           22
                description, no company was able to come up with specific job
                functions. To add, table of organization was not given importance by
                the companies as well as the back up system, thus, no functional chart
                to draw the lines of responsibilities and authorities.

                Table 5 shows out of thirty (30) companies, only five (5) can be
                considered that have the key personnel running their operations; it is
                important to mention that only 23% have assigned the executive
                directors, which means professional people according to the
                company’s activity, while the owners of other companies act also as
                executive director.

    Table 5. Overview Chart of Present Key Organizational Positions

     Key                                                                                                 COMPANIES
  Functions         1       2       3       4       5       6       7       8       9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
1. Owner/
Executive
Director        x               x       x                       x       x                x       x        x   x   x   x   x   x   x   x   x   x   x   x   x   x    x   x
2. Executive
Director                x                       x       x                       x    x       x       x
3. Production   X       X       X       X       x       x       x       x       x    x   x   x   x   x    x   x   x   x   x   x   x   x   x   x   x   x   x   x    x   x
4. Quality
Management      X                               x                       x       x                x
5. Sales &
Marketing       X                               x
6. R&D                                                                  x
7. Finance      X X X X x                               x       x       x       x    x   x   x   x   x    x   x   x   x   x   x   x   x   x   x   x   x   x   x    x   x



                Expert findings: getting the right people and placing them in the
                right position; also defining their duties and responsibilities comes
                also as a form of effective measure to facilitate workloads and assist
                the top management in attaining the company’s objectives (refer to
                8.0.1 for recommendation)

                Figure 2. Process oriented organization structure




                                                                                                                                                                  23
             Product Management
4.2.1 Systems and Procedures

As most of the companies start as a “Mom and Pop” style of business,
written guidelines, policies and procedures were not given much
attention. It was assessed that most of the companies went on with
their activities without setting standard rules regulations which are
necessary to achieve an efficient, effective workflow and organization.


    Customer Related          Product Related           Corporate
        Activities               Activities             “Hygiene”

-   Marketing             -   R&D                   - Finance and
-   Sales                 -   Purchasing              Administration
-   Services              -   Production            - Legal
                          -   Testing/Quality       - Human Resources
                          -   Distribution          - MIS



Business responsibility   Responsibility for cost
   for revenue and            of products
        margin




4.2.2 Basic Documents (Documentation)

Administrative forms were not in place. Sensitive matters were not
professionally documented. The basics of issuing production related
documents such as Job Order, Transmittal Slip, Request Issue Slip,
Delivery Receipts, Receiving Reports and others were overlooked.
Among thirty (30) companies, only 4 (13%) are making use of the
basic documents.

Expert findings: basic documents would be a great help to the
owners in monitoring the different work activities, workflow, and
stocks control in the company (refer to 8.0.1 for recommendation)




                                                                     24
  Department / Section          Forms to Produce / Issue     Forms to be received

 - Marketing                 - Marketing Portfolio          - Motion and Time Study
                             - Sample Job Order             Results
                                                            - Materials Consumption
                                                            Reports
- Production Supervisor     - Production Status Report     - Job Order (from Marketing)
                            - Job Order

- Production Planning and   - Production Planning and      - Job Order (from Marketing)
  Inventory Control           Scheduling Sheet

- Receiving                 - Receiving Report             - Purchase Order
                            - Receiving Monitoring Sheet   - Delivery Receipt
                            - Transmittal Slip
- Stockroom                 - Stock cards                  - Transmittal Slip (from
                            - Request/ Issue Slip            Receiving)
                            - Purchase Requisition

- Line Leaders              - Transmittal Slip             - Transmittal Slip
                                                           - Job Order
                                                           - Q.C. Points

- Purchasing                - Purchase Order               - Purchase Requisition




4.3    MANAGEMENT

       In different metal working companies the expert met managers who
       had long-standing professional experience. Seemingly some of them
       had overcome the limits of old times. However, a need was felt for
       knowledge improvement to the international market trends, to
       modern marketing-methods, for the procurement of raw materials
       and machines on the international markets. A centralized style of
       management is recognized among biggest number of companies.

       4.3.1 Manpower

       The lack of sufficiently trained workers is a perennial problem of the
       surveyed companies and generally of the metalworking industry. On
       the other hand those existing qualified workers are 45-50 years old
       and unwilling to transfer the knowledge to the young generations.
       Basically, labor-intensive, it suffers from shortage of qualified
       workers especially of young ones due to very few or non existent
       training programmes available for the industry in Kosovo. In most
       cases the workers are semiskilled. Under such circumstances, many
       companies prefer to get or pirate skilled workers from other
       companies.



                                                                                          25
Even though in Kosovo are operating several vocational training
centres, the majority of respondents complain about their weak
effectiveness and efficiency in term of having more intensive and
appropriate training programmes.

Expert findings: training prior to any job entry is very important, as
production techniques have become complicated and the technological
pace of the industry has experienced marked improvement (refer to
8.0.1 and 8.0.2 for recommendations).




                                                                    26
4.4   MARKETING AND EXPORT PRACTICES



                                       27
      4.4.1 Marketing practices

      The surveyed metalworking companies operate almost exclusively for
      the Kosovo market. Their important client groups are enterprises,
      public authorities as for example energy supplies enterprises. On the
      other hand products as metal stoves, metal doors and similar things
      are sold to private end users. Distribution in the domestic market is
      usually done through manufacturer-to-retail or department store and
      manufacturer-to-end user channels. The later is mainly practiced by
      companies with their own showrooms or stores.

      Product promotions are facilitated by participating in trade fairs both
      here and abroad.     Brochures had almost 70% of the attended
      enterprises. They make advertising partial more or less systematically
      in regional newspapers or TV – media.

      A greater percentage of respondents believe that marketing activities
      and product promotion can be facilitated by membership in local
      associations and chamber of commerce.         Actually only 40% of
      surveyed companies are regular members of the Kosovo Association
      of Metal Processing Companies which operates under the Kosovo
      Chamber of Commerce.

      4.4.2 Export practices

      The metalworking sector in Kosovo appears to be more confined in
      the domestic market although some success in exports by order has
      been made in some products, mainly in Albania, Macedonia, Croatia
      and Serbia.

      Actually the fabricated metal products in Kosovo are commonly
      transported to destination countries by tracks of 22 tons. Price
      quotations are made ex works and the choice of shipping line is left to
      the buyer’s discretion.

      Expert findings: INCOTERMS are unknown for the major part of
      companies (refer to 8.0.2 for recommendations).




4.5   QUALITY MANAGEMENT

      There is lack of competitive quality output, partially due to absence of
      testing facilities; also due to poor consumer as well as manufacturer
      orientation toward product quality (20% of surveyed companies).


                                                                            28
From thirty (30) surveyed companies only two of them have got the
certificate of the Quality Management System ISO 9001 (Arda Rei
Energoinvest and Meridian Energoinvest) while in process of getting
the certificate are the companies Kuk-Commerce and Elsam. Two
other companies (Vinex and Osa Termosistemi) are planning for
2007.

Nevertheless, about 40% of companies are aware of the importance
having the QMS certificate not only for the commercial purposes but
also as necessary for improvement of processes; remain of 60% value
the product quality control as sufficient organizational function to
insure the product quality.

Expert findings: companies pay more attention to process and output
quality control (look at Figure 3) without being careful of inputs that
affect uninsured output quality (refer to 8.0.1 and 8.0.2 for
recommendations).

Figure 3. Overview of the quality insurance tools usage


                         Use of quality insurance tools


                    Always       Frequently           Rarely   Never


 Input Quality
 Control
 Process Quality
 Control
 Output Quality
 Control
 Internel Quality
 Insurance System
 Quality Management
 System according to
 Reccomondations of
 ISO 9000




                                                                       29
4.6   MATERIALS MANAGEMENT

      Poor storage practices were noted. Stocks were found not to be
      properly arranged. Housekeeping, storage facilities, labelling and
      coding needed improvement. The problems were attributed to the
      lack of knowledge in materials handling and control. Security system


                                                                        30
      in the store room was not well implemented as evidenced by
      unauthorized people getting access to it. A positive exception is bigger
      companies or those with longer tradition.

      Also, there is an apparent absence of written guidelines on inventory
      control system. Thus, the difficulty in accounting all stocks purchased
      as against actual usage prevailed. A disorganized filing system and
      inaccurate warehouse records all the more contributed to an
      ineffective system in stock control and monitoring. This resulted to
      material stock outs and rush purchases.


4.7   FACILITIES

      While all the companies owned the production area, the plant lay-out
      was not given much attention. This has a direct effect on the
      efficiency of production and cost cutting.

      Factors considered were the plant lay-out determining the flow of
      work in such areas as the receiving area, production and type of
      operation (straight line). Only 37% out of thirty (30) companies
      showed compliance to standard plant lay-out for their type of
      products and respective technologies. This relates to recently NewCo
      which during the revitalization of production areas did the product
      based lay-out. However, there were aspects like warehousing system,
      housekeeping, and adequacy of machinery and equipment that need
      equal attention.


4.8   SUPPLY OF RAW MATERIALS

      Raw materials are mainly imported. Metals come from Macedonia,
      Serbia, Ukraine, Italy, and to a bigger part from Greece and Bulgaria.
      Components as ball bearings and inputs as enamels, lubricants and so
      forth must be imported almost exclusively.

      The metalworking sector lists the unavailability and high price of
      materials among its major production bottlenecks. The unstable
      supply of some materials, like steel sheet 0.5mm-2.5 mm, steel rod
      Ø4mm - Ø22mm, copper tubes Ø4mm - Ø42mm, aluminium profiles,
      steel INOX 0.3mm-0.8mm, than individual supply in relatively small
      quantities and high prices, high transportation costs, add problems to
      the financing requirements as more capital is now tied up with
      inventories.



                                                                            31
      Expert findings: for the purpose to achieve stable purchasing and
      favourable purchase price, there is a need organizing the supply chain
      schemes for companies using same raw materials or use the same
      purchase sources (refer to 8.0.1 and 8.0.2 recommendations).


4.9   FINANCIAL MANAGEMENT

      About 60% of surveyed companies avail of the services of an
      accountant on a retainer basis. They likewise mentioned lack of
      knowledge in the preparation of financial records.

      An important factor that represents a weak financial management of
      the companies is lack of standard method of product costing and
      improper segregation and recording between personnel and business
      funds.

      There is also the absence of a systematic collection strategy within the
      sector that would ensure profitable returns for manufactured
      products and services rendered.




                                 Chapter 5



5.0   GROUPING BY ACTIVITIES (TECHNOLOGIES & PRODUCTS)

      It is difficult to do an overall classification of metalworking sector in
      Kosovo based on 30 surveyed companies because major part of them
      does mixed activities (refer to the Table 6 and 7). Nevertheless, a
      classification into five (5) major groups is portrayed following
      (percentages refer to 30 surveyed companies):


                                                                             32
I.     Manufacture of metal products (68%)

       Manufacture of metal products utilizes any or all combinations
       of the various metal-forming operations, such as sawing, roll
       forming, blanking, flanging, bending, punching, drilling,
       welding, grinding, assembling and finishing.          Products
       manufactured include welded structures like steel building
       frames, steel windows and grills, gates, doors, market shelves,
       cans, petrol tanks, furniture and fixtures, etc.

II.    Machine-tool industry (8%)

       This sector is still in its initial stage of development.
       Companies involved in this industry produce machines for their
       own use and repair or assemble prototypes of machine tools,
       such as lathes, drills, shapers, milling machines, grinders,
       power saws and press brakes.

III.   Electrical Machinery and Electronic Equipment Industry (14%)

       The manufacture of electrical equipment is also very limited.
       There is one firm that produces industrial and transformer
       stations (Meridian Energoinvest), then electronic counters
       (Timi), electric fuses (Arda Rei Energoinvest) and motors for
       white appliance (Gorenje Elektromotori).

IV.    Heat Treatment and Galvanizing (10%)

       Specialized heat treatment and galvanizing companies are in a
       very small number inherited from former greater state owned
       companies (i.e. Vinex, Vegeltorja, Llamkos). No any of them
       deal exclusively only with this activity but it is part of their
       technology used for final products.


V.     Services (0%)

       Based on the nature of the different lines of activities in which
       it is engaged, the service industry can be classified as
       fabricators, jobbers and engine re-builders. Operations covered
       are usually machining, drilling and welding.            Products,
       however, depend on the needs of the customers.

Table 6 and Table 7 attached to Annex 3 and Annex 4 portrays a
grouping by technologies/processes and by products.


                                                                      33
5.1   GROUPING BY EXPORT POTENTIALS

      In spite of the numerous problems affecting the metalworking
      industry, it has managed to grow in terms of sales and assets.
      Shortage of funds, coupled with the increasing production costs due to
      imported raw materials, absence of reliable know-how, no
      information of market trends, lack of R&D, no diversification of
      products, lack of brand name, show inability of companies to meet
      export market due to weak competitiveness especially with standard
      products. However, table 8 shows a small group of companies with
      potentials to export final products, components and semi-finished
      products. From this group of eight (8) companies, 75% are recent
      privatized companies (NewCo).

      Table 8. Grouping of companies by export potentials


        A. Standard final products
        1   Arda Rei Energoinvest     - Low voltage high capacity fuses
            NewCo.                    - High voltage high capacity fuses
        2   Osa Termosistem, NewCo.   - Refrigerated display cases with drawers, storage
                                      compartment, ventilated cooling (for sweets, meat and
                                      other food)
                                      - Condensers for cooling systems-refrigerators
                                      - Evaporators for cooling systems-refrigerators
        3   Vinex, NewCo.             Fasteners of all types with Ø 2mm-16mm (bolts, screws
                                      and nuts)
        4   Gorenje Elektromotori     - Single phase asynchronic electric motors for washing
                                      machine
                                      - Single and three-phase asynchronic electric motors
                                      for industrial applications IEC up to 1,5 kW
        5   Timi-Kosova, NewCo.       Electronic counters for electric energy
        6   Elsam, NewCo.             - Heat exchanger with brassed and steel pipes,
                                                                               3
                                      - Storage tanks for central heating 1-5m
                                                                      3
                                      - Petrol storage tank 1-1000m
                                      -
                                        Carrying steel constructions for production plants and
                                      sport halls
        7   LLAMKOS, NewCo.           - Zinc plated metal - longitudinal cut
                                      - Zinc plated metal – rolls and boards
                                      - Profiled plate metal
        B. Final products, components and semi-finished products by order
        1   Kuk Comerc                - Metal furniture
                                      - Decorative iron elements
                                      - Metal shelves
                                      - Decorative ornaments for balconies, garden doors and
                                      fences




                                                                                                 34
         2   ELSAM, NewCo.                - Garbage containers, opened and closed
                                          - Mobile shops with quadrant and hexagonal base
                                          - Equipment tools, shafts, gears, etc.
                                          - Different metal works, as fences, stairs, footsteps, and
                                          other products by order

         3   Kosova Steel, NewCo.         - Automotive parts (vehicle chassis, long beam of
                                          chassis, front and rear seats skeletons, exhaust
                                          system, axle housing)
                                          - Mechanical details (pivot/axis, tools for pressing
                                          machines, various mechanical details),
                                          - Other metallic forms
         4   LLAMKOS, NewCo.              - Gutter pipes, phasonic elements, running pipes, L-
                                          profile, angular channels, regulation (control) valve,
                                          angles, segmental bow, circular branches, roof plates,
                                          spiral pipes, profiled plate metal, wind shielders,
                                          garage.
         5   Gorenje Elektromotori        - Stator/rotor for hermetic compressor motors of
                                          refrigerators



Initial negotiations for export and transfer of know-how are in process by a
certain number of companies (refer to Annex 5).

5.2   GROUPING BY POTENTIALS FOR NEW INVESTMENTS

      Besides the company Gorenje Elektromotori, no any other company
      has drafted development plans for product innovations (new products)
      or rationalization innovations (existing products).

      Nevertheless, there are some ideas and initiatives for additional
      investment planned by four (4) companies like the following table
      shows:

      Table 9. Grouping of companies by potentials for new investment


Company Name                Project/Idea
Gorenje Elektromotori       Universal motor for washing machines
                            (investment funds of 5.000.000 €)
Elsam, NewCo.               - production of sanitary water boilers with volume of 80L
                            - production of agriculture working tools
                            (no estimation of investment funds)
                            - reactivation of the hot zincing cask with width 16m
                            (investment funds of 500.000 €)
Osa Termosistem, NewCo.     - Fan Coil Units for heating and cooling
                            - Water cooled Chillers for Air Conditioning systems
                            - Air Handled Units for ventilation
                              (no estimation of investment funds)




                                                                                                       35
    Vinex, NewCo.                   - installation of a new cask with width 3,5 m for hot zincing
                                      (investment funds of 150.000 €)
                                    - production of high tension transmission towers
                                    (investment funds of 50.000 €)
    Arda Rei Energoinvest           Contactors for energetic systems
    NewCo.                          4-40 kW
                                    (no estimation of investment funds)



5.3        GROUPING BY POTENTIALS FOR CLUSTER DEVELOPMENT

           Porter’s definition has guided this research. He defined industrial
           clusters as “Geographic concentrations of interconnected companies,
           specialized suppliers, service providers, firms in related industries,
           and associated institutions (for example, universities, standards
           agencies, and trade associations) in particular fields that compete but
           also co-operate” .

           Our study was more focused on identifying firms in related businesses
           that could create clusters of final products with components or semi-
           finished products. Figures below show two examples of possible
           clusters creation2.    The first one is of the company Gorenje
           Elektromotori, as Mother Company, which can create a cluster with
           companies Vinex, Fonderia Argoni and Vegeltorja Plus for producing
           electric motors; the second one is of the company Osa Termosistemi
           which can create a cluster with companies Elsam and Meridian
           Energoinvest for production of water cooled chillers for air
           conditioning systems.


           Figure 4. Cluster model of producing the electric motor


                                             Production of Electric Motor

                                                   FINAL PRODUCT            ELECTRIC MOTOR
                                                  Gorenje Elektromotori     - Design of final product and of
                                                                            the components
                                                                            - Production of basic components
                                                                            - supply of sub-contracted
                                                                            components
                                                                            - Assembly
                                                                            - Sales of final product


                    COMPONENT 1                    COMPONENT 2                       COMPONENT 3
                    Company Vinex               Company Fonderia Argoni             Company Vegeltorja

2                 SCREW
    Expert findings                             CASTED SHIELDS                   ROTOR SHAFT
                  - design & production by      - design & production by         - design & production by
                  specifications of mother      specifications of mother         specifications of mother
                  company                       company                          company                       36
      Figure 5. Cluster model of producing the water cooled chillier for air
                conditioning systems


                      Water cooled chillers for air conditioning systems

                                         FINAL PRODUCT            CHILLER
                                         Osa Termosistemi         - Design of final product and of
                                                                  the components
                                                                  - Production of basic components
                                                                  - supply of sub-contracted
                                                                  components
                                                                  - Assembly
                                                                  - Sales of final product


                  COMPONENT 1                               COMPONENT 2
                  Company Elsam                       Company Meridian Energoinvest


            CIRCULAR EVAPORATOR                             ELECTRICAL PANEL
            - design and production by                      - design and production by
            specifications of mother                        specifications of mother
            company                                         company



      There is a need for additional investigations of new opportunities to
      create clusters of different forms.
5.4   GROUPING BY POTENTIALS FOR SUPPLY CHAIN

      In today’s global market, managing the entire supply chain becomes a
      key factor for the successful business. World-class organizations now
      realize that non-integrated manufacturing processes, non-integrated
      distribution processes and poor relationships with suppliers and
      customers are inadequate for their success.

      In a today’s highly competitive market, Kosovar metalworking
      manufacturers face the challenge of reducing manufacturing cycle
      time, delivery lead-time, stable supply of raw materials and inventory
      reduction. However, every organization (company) has its own
      objectives and its own way of decision-making processes. Due to the
      conflictions among the objectives of each organization and non-
      integrated decision making processes, there might be difficult


                                                                                                     37
       organizing a supply chain management among these companies and
       finding out a mechanism which help to resolve those conflictions and
       to integrate processes.

       The objective of supply chain management is to meet customer
       demand for guaranteed delivery of high quality and low cost with
       minimal lead time. To achieve this objective, companies need to have
       better visibility into the entire supply chain of their own plans as well
       as those of their suppliers and customers. Companies today should be
       agile enough to adjust and rebuild plans in real time, to take care of
       unexpected events in the supply chain.

       Following table indicates two (2) most important materials, steel
       sheet and steel pipes, which are used by the majority of companies.
       The steel plate is common for 83.3% of surveyed companies while
       steel pipes for 40% of them.

       Table 10. Grouping by potentials for supply chain
         Company Name                Steel   Steel   Copper   Al         Al      INOX        Al
                                     sheet   pipes   pipes    profiles   sheet
 1   Arda Rei Energoinvest,
     NewCo.
 2   Elsam, NewCo.                     x
 3   Kuk Comerc                        x
 4   Llamkos, NewCo.                   x                                                          x
 5   Meridian Energoinvest,            x
     NewCo.
 6   Osa Termosistem, NewCo.           x               x         x         x       x
 7   Vegeltorja Plus, NewCo.
 8   Vinex, NewCo.                     x       x
 9   Gorenje Elektromotori             x               x                                          x
10   Kosova Steel, NewCo.              x       x
11   Timi-Kosova, NewCo.                               x
12   Inter Steel                       x
13   Daija Metal                       x       x
14   Fabrika e radiatoreve, NewCo.     x       x
15   Gorenje Niti-Tiki                 x               x
16   Asllani                           x       x
17   Feral                             x       x
18   Metali                            x       x
19   Jakova                            x       x
20   Fonderia ArgoniI                                                                             x




                                                                                        38
21    Ben Com                    x
22    Alu-Metal                  x                        x       x
23    Flame                      x       x
24    Frigoterm                  x       x       x        x       x       x
25    Eko                        x                        x       x       x
26    Shllaku                    x                        x       x
27    Tekniku                    x

28    Lux-Special
29    Torno                      x       x
30    Merkuri-Company            x       x


        Before being taken any initiative to organize a supply chain with
        metalworking companies in Kosovo, the expert suggests the following
        procedures for the simulation study of supply chain management:
         Understanding supply chain processes (understanding the business
          process and industry characteristics) and planning processes
         Design scenario (Most of the time it is not reasonable to model every
          details of the supply chain. It is a good idea to focus on the problem
          areas)
         Data collection
         Performance measures
         Define target (what is near optimal) for each performance measure
         Define termination condition
         Evaluation of supply chain policies/strategies.
                                  Chapter 6



6.0     INNOVATION ATRACTIVENESS AND PORTFOLIO ANALYSIS

        The success of R&D demonstrates the ability of a company to
        innovate, indeed the superiority of its culture. The metalworking
        industry in Kosovo doesn’t take seriously the fact that today’s R&D
        determines tomorrow’s success. So for many companies, research and
        development (R&D) is one of the weakest factors affecting future
        profitability and innovation attractiveness. Nevertheless, in this study
        the expert examined the R&D activities of 30 different companies
        from the metalworking industry with a view to identify typical
        shortcomings and drawing up simple rules for successful R&D
        management. Also the expert performed a portfolio analysis of
        innovation abilities to export generation.

        6.0.1 Shortcomings in R&D management


                                                                              39
        A. Deficient performance

            Value       Unplanned, value-reducing
                        activities




                                          Cost


        B. Weak contribution of process strategies
         Process Effectiveness (contribution to
         strategic successes                                             Process strategies:
                                                                         - objectives
                                                                         - resources
                                                                         - procedures

                                                                              Legende:

                                                                                       High         Medium      Low

                                                                               10%            40%            50%


        C. Short-term-view                                                       Process Efficiency
                                                                                 (resources used)



  Little strategic approach                          R&D objectives of little importance

Is there a systematic                                          Im portance for
strategy for R&D activities                                    R&D orientation
                                            1. Variant diversity
                                               in production
  17% Yes           83% No
                                              2. Company size


                                                  3. Market state


                                             4. R&D objectives


                                             5. Innovation type


                                                                    0%   5%      10%   15%    20%    25%    30%   35%
                                                                                                       % of responses




                                                                                                                        40
         Less than 20% of the companies examined have formulated their
         own R&D strategy at all.


      6.0.2 Measures to be undertaken

      Following measures addressed to metalworking companies are based
      on three action levels: strategy, effectiveness, and efficiency.

      Measure 1
      Starting from the corporate strategy, formulate a clear R&D strategy
      and specify the underlying strategic objectives

      Measure 2
      Set up a clear priority list for R&D projects using a project portfolio
      management system based on economic ratios, and allocate resources
      accordingly. Identify the “starts” among different projects.

      Measure 3
      Boost the efficiency of R&D projects by applying success levers in the
      following six dimensions:
             Time management
             Quality management
             Ability to innovate
             Resource management
             R&D controlling
             People management


6.1   INNOVATION ABILITIES

      This study recognizes a weak ability of companies to innovate and
      successfully translate them into a product idea. The companies
      incorporate the internal and external information to a less degree in
      their innovation process.

      Expert findings: In concrete terms, this can range from close
      observation of the competition and patent research through to trend-
      spotting, specialist seminars, trade fairs, and direct contacts to
      universities (refer to 8.0.1 and 8.0.2 recommendation)

      6.1.1 Portfolio analysis of innovation abilities to export generation

      Order-related innovations and individual/variant production is more
      present among metalworking companies, while non-order-related
      innovations and standard production are to a lees degree.


                                                                              41
On the other hand, rationalization innovators demonstrate a typical
deficit in their innovation capabilities. The figures from our study,
for example, indicate that, specifically at rationalization innovators,
the purchasing department is almost never involved in drawing up the
performance specifications. A lees number of companies generate
ideas for R&D in conjunction with suppliers. There is untapped
potential here, as possible cost savings arising from supplier ideas go
unrealized when they are not involved.          There are also sharp
differences in this respect between product innovators (higher degree)
and rationalization innovators (less degree).




Figure 6. Portfolio analysis of innovation abilities to export generation


    Export
                                                        Legend:
                                       B
                                                        A – Engineering products
                                                        (order-related innovations)

                                                        B – Standard products (non-
                                       A                order related innovations)


                                               Innovation abilities




Expert findings: potentials for export with individual/variant
production (engineering products) are very modest due to less order-
related innovation abilities (group A) while standard products have
chances for export due to more experienced non-order related
innovation (group B). For the group A, the subcontracting system
with manufactures – assemblers in foreign countries could be an
opportunity because of getting the innovation assistance and
specialization by mother company in the process required for the



                                                                                      42
      manufacture of particular types of components of engineering
      products (refer to 8.0.2 recommendations).




                               Chapter 7



7.0   IDENTIFICATION OF PROBLEMS

      A problem-and-effect method (also known as Ishikawa or fish-bone
      diagram) is used for identifying the major problems that cause threats
      to continues growth and development of the metalworking sector.




                                                                          43
                   Figure 7. Problem-and-effect diagram


                           Materials                                      Finance                                 Absence of
                                                                                                                  systematic
                                                            Unfavourable loan        Lack of working
                                                                                                                  collection strategy
       High cost of                                         terms                    capital
       imported materials              Unstable
                                       supply                                                                Advance payment of
                                                                                                             45 days for materials
                                                             High                                            supply
 Individual                               Unavailability     interest
                Small                     of local                                                    Lack of standard
 supply
                quantity                  materials                                                   method of product
                                                               Short repayment
                                                                                                      costing
                      High custom                              period
  Transport                                                               No grace
                      duties                                              period for
                                                                          machine
   Effect                                                                 supply
                                                                                                                           Threats to
                                                                                                                           continues
                                                                                                                           growth and
                                                           Centralized          Shortage of skilled
                                                                                                                           development
          Long production cycle                            management           manpower
                                                                                                                 Lack of product
                                       Underutilization                                                          diversification
                                       of capacities
                                                                                                                              Lack of
Old             Idle time                                                 No training    Lack of                              R&D
equipment                     Function oriented                           programmes     motivation
                              structure                    People         available
       Inpropper                                                                                        Lack of marketing
       lay-out                                                                   Old qualified          4Ps *
                       High maintenance                                          manpower
                       costs                                                                          Inability to meet
 Poor-quality                                                                                         export market
 materials                        Lack of spare
                                                                        No information of                     No quality
                                  parts
                                                                        market trends                         insurance
                       Old
                       equipment
                                                                                                                          Weak
 Technology                                                                                                               competitivness
 & Process                                                                          Market


                   * Marketing 4Ps: Product, Price, Promotion, Place
                   Problems of varying magnitude, which include technology/process,
                   people, financing, materials and the marketing of products and
                   services, pose as major.

                   Following are some of the major problems being faced by the
                   companies studied:

                   7.0.1 Financing

                   Financing appears to be the greatest problem of the industry. The
                   local metalworking industry is undercapitalized.         Tight credit
                   continues to restrain the business concerns from further expansion of


                                                                                                                              44
their production capacities or installing high-tech technologies. Such
financial constraints as lack of equity and difficulties in obtaining
loans with favourable terms result in inability of most firms to
achieve an efficient production level.

The need for more working capital is acutely felt by small
entrepreneurs due to lack of long term loans. The volume of credit
extended by local commercial banks for working capital is very
limited; unfavourable terms (high interest of an average of 14%, short
repayment period and no grace period).

7.0.2 Lack of technology and process oriented structure

To meet the growing needs of the market, the technology of the
industry must be constantly improved. At present, the foremost
technical problems of the industry are poor-quality materials, lack of
standards, frequent machine break-downs, production scheduling and
insufficient procedures and basic documentation knowledge.
Production planning and quality control are apparently lacking in
most establishments.

7.0.3 Raw materials shortages

The metalworking sector lists the unavailability of materials (due to
unavailability of domestic materials) and high price of materials
among its major production bottlenecks. The unstable supply of some
most important materials (steel sheet, copper tubes, etc.) brings added
problems to the financing requirements of the industry, as more
capital is now tied up with inventories.



7.0.4 Product diversification

There are at present hundreds of diverse engineering products
characterized by a variety of sizes, designs, constructions and quality
serving different purposes. But this survey of different metalworking
companies revealed a certain degree of concentration on products of
the same types and models (gates, doors, fences, cans, shelves, steel
structures, gutter pipes, etc.). Competitive product designs are lacking
within the industry. Products that have found acceptance in the
market (especially local market) are readily duplicated in numerous
establishments. Mostly this is case with small establishments that
have simple technological structure. Nevertheless, there are some
products with potential for export like fasteners, electric fuses, metal



                                                                      45
      furniture, electric motors, industrial and transformer stations,
      electronic counter, etc.

      7.0.5 Inability to meet export markets

      A number of limitations are being encountered in the operation of the
      metalworking companies with regard to export performance. The
      machine tools installed for production, not so capable of meeting
      international standards and specifications, then limited working
      capital, indirect contact with the world market, dearth of qualitative
      raw materials, poor competitiveness, to a lesser extent, the inadequate
      technical know-how involved in production, have been major
      obstacles identified confronting the export opportunities.

      Expert findings: In the export market, distribution may be
      facilitated by using import agents, traders or wholesalers who in turn
      pass the goods to retail stores. The contract assignments do not exist;
      exports are completely based by orders (single or repeat) (refer to
      8.0.2 for recommendations).


      7.0.6 Shortcomings in R&D management

      For more details refer to the Chapter 6.


      7.0.7 Other problems

         There is a shift of student enrolment to irrelevant, overcrowded
          fields of endeavour like medical science course. Thus, there is a
          need to develop programs and strategies that will attract students
          for technical science in order to contribute to the industry.
         Absence of organization structure
         Fast turnover of highly skilled workers due to piracy
         High production costs
         Poor marketing strategies (4Ps)
         Unreliable sales contracts
         Lack of development innovations
         Absence of inter-firm network
         Absence o sub-contracting arrangements with producers of final
          products at local and international market.


7.1   EVALUATING PROBLEMS AND SOLUTIONS



                                                                           46
Figure 8: Expert findings for evaluating problems
                                                        Examples:
                                Actionable              - Method of product
   Example:                                             costing
   - Transport                                          - Centralized
   - Unstable supply                                    management
   - Advance payment for                                - Basic documents
   material supply
                               Focus Here               not in place
                                                        - strategic
                                                        marketing




 External                                                     Internal
   Examples:                                     Examples:
   - Unfavorable loan                            - No training programs
   terms                                         available
   - High custom duties                          - Old qualified
   - Unavailability of                           manpower
   local materials
                                Not Actionable

                                                                              Figure    9:       Expert
findings for evaluating solutions
                                                                                   High Impact       Example:

                                                                                                     Putting in place
                                                                                                     basic documents
                                                                                                     needed for
                                                               Third              First              systemized
                                                                                                     production
                                                                                  Priority

                                       Difficult to                                                    Easy to
                                       Implement                                                       Implement
                                                                                       Second


                                                                                   Low Impact


                                     Chapter 8



8.0      SUMMARY OF RECOMMENDATIONS

         8.0.1 Addressed to Companies

         Refer to expert findings 4.1.1: develop inter-firm subcontracting
         schemes with manufacturers/assemblers for making production
         capacities more productive.
         Refer to expert findings 4.2: establish a function oriented
         organization structure.
         Refer to expert findings 4.2.2: put in place the basic documents
         needed for systemized production.




                                                                                                     47
Refer to expert findings 4.3.1: formal education and intensive
training programmes are needed related to the skill requirements of
metalworking jobs at all levels.
Refer to expert findings 4.5: Install the internal Quality Insurance
System (input-process-output).
Refer to expert findings 4.8: establish the supply chain committee
within the Association of Metalworking Companies in order to
develop a joint supply portfolio and network.
Refer to expert findings 6.1: establish a knowledge management
system to avoid constant outflow of knowledge as information is
forgotten or employees leave the company.
Refer to expert findings 7.1: Evaluating problems focus on those
actionable and internal.
Refer to expert findings 7.1: Evaluating solutions focus on those
easy to implement and with high impact.
Other: due to high production costs, take decision of “Make or Buy”.
Subcontracting is found necessary and advantageous if the cost of
production of the component is less when supplied by a subcontractor
than done by a company itself (refer to 7.0.6).

8.0.2 Addressed to GTZ

Refer to expert findings 2.1.1: A National Action Plan of metals and
engineering industries, respectively Science and Technology
Coordinating Council is recommended to be established in
partnership with the Government, Academy and Industry and with
assistance of GTZ and international experts.
Refer to expert findings 4.0.1 B: due to more prosperity
opportunities, it is recommended to the GTZ for its project content
focusing the priority to the group of recent privatized companies, so
called NewCo.
Refer to expert findings 4.3.1: supporting the Association of
Metalworking Companies to develop and implement training
programs related to the skill requirements of metalworking jobs at
all levels.
Refer to expert findings 4.4.2: bringing in house the international
expertise regarding the export rules and practices (INCOTERMS).
Refer to expert findings 4.5: supporting the Association of
Metalworking Companies to develop and implement training
programs for establishing and implementing the Quality Insurance
Tools especially for export-oriented companies.
Refer to expert findings 4.8: ensuring trainings and bringing in
house the international expertise on how to develop a supply chain
scheme.




                                                                   48
                 Refer to expert findings 6.1: supporting establishment of a
                 competence centre as important source for generating new ideas and
                 helping to build up specific expertise outside the line organization.
                 Refer to expert findings 6.1.1: assisting companies looking for
                 subcontracting arrangements with foreign companies to generate
                 exports.
                 Refer to expert findings 7.0.5: assisting companies looking for
                 distribution channels to export markets (import agents, traders, and
                 wholesalers).
                 Other: assistance of the international and local experts is necessary in
                 programming the right product mix with the biggest market demand
                 especially for export markets (refer to 7.0.4.).




       ANNEX 1. KCC Portfolio of Metalworking Companies in Kosovo3

N.R.       Company Name          Contact Person     Location     E-mail                   Telephone

  1        Leutrim exp-imp       Besim Krasniqi                                           37744131613

  2        Profil metal          Safet Dorambari                 profil_metal@yahoo.com   37744127222
  3        Beki                  Mejdi Gashi                                              37744227371
  4        Te Lita               Halil Lybeqeva                  te_lita@hotmail.com      37744139979
  5        Vllëzërit Cikaqi      Sheremet Cikaqi                                          37744217495
  6        Metaliku              Sejdi Bajraktari                                         37744191479
                                                    Mushtisht,
  7        Eurometal mala        Urim Mala          Prizren                               37744172688
                                                    Leshan
  8        Çeliku                Masar Gashi        Therandë                              37744112540
                                                    Mushtisht,
  9        Metaliku Mala         Agron Mala         Prizren                               37744139696
                                 Muharrem
 10        Frigo-Toni.NTSH       Krasniqi           Therandë     frigotoni@hotmail.com    37744135749

       3
           Source: Kosovo Chamber of Commerce


                                                                                             49
11   Cenbaza             Murat Cenbaza      Rahovec                                 37744204138
12   Shehu-A             Sead A.Shehu       Rahovec   shehu_a@hotmail.com           37744123478
13   Osa Termosistem     Selami Osa         Rahovec   osatermosistemi@hotmail.com   37744119710
14   Sylka               Enver Sylka        Rahovec   sylka_rahovec@yahoo.com       37744127208
15   Condor              Azem Sopaj         Rahovec   condor_rr@hotmail.com         37744500823
     Termosistem
16   group               Sinan Ejupi        Rahovec                                 37744366337
                                                      timikosova@yahoo.com,
17   Timi Kosova shpk    Fatmir Thaçi                 fatmirusha@yahoo.com          37744204811
18   Roshkodoli          Avdyl Dervishaj                                            37744180412
     Jusaj metal,
19   tregtare             Jusaj                       jusaj_metal@hotmail.com       37744131045
20   Malësia             Zefë Malësia                                               37744138996
21   Kastrioti-B         Bajram Lluka                                               37744139543
                                                      rexhegjonbalaj@yahoo.com,
                         Rexhe Gjonbalaj,             kosovasteel@gmail.com,        37744438163
22   Kosova Steel        Jeton Veseli                 veseli.jeton@gmail.com        37744358310
23   Ideali Vokshi       Gazmend Vokshi               ideal-vokshi@hotmail.com      37744137832
24   Ak-pe               Zymer Shala                                                37744117173
25   Sumaj metal         Afrim Shoshi       Pejë      sumaj_metal@hotmail.com       37744228916
26   Kuk commerce        Naser Arifi                  kukcomerc@hotmail.com         37744502368
27   Sharri plast        Zenel Jusufi                 sharriplast_@hotmail.com      37744113910
     Fabrika e veglave
28   "Plus"AE            Kemajl Zariqi                info@plus-ks.com              37744124886
29   Hekurani            Ahmet Gashi                  hekurani_fe@yahoo.com         37744115071
     Fonderia
30   "Fonako""Argoni"    Afrim Konjufca               fonderia_argoni@yahoo.com     37744166237
31   Gashi               Gëzim Gashi                                                37744172452
32   Sodovina            Nexhat Fetahu                sodovina@hotmail.com          37744501561
33   Besimi commerce     Agim Shahini                                               37744201822

34   Elsam               Sami Musliu                  info@elsam-ks.com             37744121657
35   Laçi                Isa Laçi                     laçi_@hotmail.com             37744189426
36   METALI I RI         Avni Mehmeti                                               37744117307
37   Ena                 Ruzhdi Kumnova               fabrikaenvesha_@yahoo.com     37744122987
38   Feral               Ismet Grezda                                               37744253650
                         Gazmend
39   G.B.                Dinarama                                                   37744246862
40   Shllaku             Albert Shllaku               shllakumetal@hotmail.com      37744154563
41   Daijametal          Pashë Daija                  daijametal@hotmail.com        37744123002
42   Rudimetal           Ismet Rudi                                                 37744234880
43   Leci                Pashk Nokaj                                                37744168045
44   Tekniku             Qemajl Lluka                 tekniku@yahoo.com             37744247013
45   Jakova              Musa Vula                    binvula@gmail.com             37744129853
46   Eko                 Enver Rugova                 eko@europe.com                37744133944
     New Co "Llamkos"                                 llamkos@yahoo.com,
47   Steell.l.c.         Luan Berisha                 lion_berisha@hotmail.com      37744506740
                                                      engoffice@yahoo.com,
48   Vinex-Eng office    Ilir Rexha                   ilir.rexha@gmail.com          37744137507



                                                                                      50
49   Metali              Elbasan Alidema                                                37744505129
     Istria commerce
50   SHA                 Sahit Zuzaku                   istria_sha@yahoo.com            37744131955
51   Eling               Zijadin Aliu                   eling_zj@hotmail.com            37744177323
52   Albini              Ibrahim Krivaqa                                                37744125959
53   Imkos               Idriz Demaku                                                   37744177187
     Compania
54   Xim"Strezovc"       Shukri Shabani                                                 37744231099
     F-ka e
     radiatoreve-        Abylmexhit
55   Jugoterm            Selmani                                                        37744501830
56   AlplastBesi         Sejda                                                          37744504414
     New CO Çeliku
     L.L.C.
57   metalconstruction                      Gjilan      celiku_gjilan@yahoo.com         37744503305
     BIZHUTERI &
58   EMBLEMA             Gani Kastrati                  bizhuteri_emblema@hotmail.com   37744133188
59   Metaliku-S                             Viti        metaliku_s@yahoo.com            37744134726
                         Shemsedin
60   Metalprojekt        Kryeziu                        metal_project1@hotmail.com      37744133230
61   Berat               Ibadete Carrolli                                               37744132062
62   Arbnori             Sami Maka                                                      37744231198
63   Rinasi              Xhezair Ibrahimi               rinasi_xh@hotmail.com           37744132083
64   CF-Progres, SHPK    Hevzi Xhelili                  progresi_ks@hotmail.com         37744502035
     Mehuka –            Sylejman                       mehuka-
65   company             Mehuka                         company@hotmail.com             37744211324
66   MC Energoinvest     Agron Zhubi                    eco@meridian-ks.com             37744133690
     Arda Rei
     Energoinvest New
67   Co                  Bashkim Loshi                  arda_rei@yahoo.com              37744149592
68   FAN                 Smajl Deshishku    Besianë                                     37744111783
69   Asllani             Hasim Asllani                                                  37744175555
70   Torno               Avni Toplica                   torno@hotmail.com               37744115102
71   A&E                 Abdullah Beçiri                                                37744123556
72   Merkuri Company     Orhan Haziri                   merkurcompany2003@hotmail.com   37744130716
73   Gajtani             Afrim Gajtani                                                  37744123859
74   Argent              Nazmi Hasolli                                                  37744214213
     Kosovo Metal
75   Industries          Edmond Kraja                   arionlleshi@gmail.com           37744610921
76   Euro-Inox           Ekrem Uka                      euroinoxx@hotmail.com           37744507828
                         Hilmi Reka                                                     37744505471
77   Inter steel         Bujar Reka         Prishtinë   intersteel2003@@ahoo.com        37744189861
78   Makina                                             makina_pz@yahoo.com             37744190429
79   Tiki Niti           Mehdi Aliu         Ferizaj                                     37744121319
80   KEK                 Visar Kelmendi     Prishtinë   visar.kelmendi@kek-energy.com   37744500624
81   Trepça              Nazmi Mikullovci   Mitrovicë   trepcamik@hotmail.com           37744222315
82   Te Ismeti           Mehmet Berisha     Prishtinë   67@hotmail.com                  37744206823
83   Al-Besmont          Besim Vllahiu      Prishtinë                                   37744143764
84   Autoprodukt         Shaqir Bytyqi      Prishtinë   autoprodukt@yahoo.com           37744664131



                                                                                          51
85       Termoteknika    Naim Beqiraj     Prizren     naimtt@hotmail.com      37744137060
86       Erona           Florim Stublla   Podujevë                            37744169949
                         Abdurrahman
87       Bosch           Abdurrahmani     Mitrovicë   n.p.bosch@hotmail.com   37744213773



     NOTE: Shaded rows are surveyed companies that are regular members of
     the Kosovo Association of Metalworking Companies




     ANNEX 2. Profile of surveyed companies


     1
                               ARDA REI ENERGOINVEST
                                     COMPANY PROFILE

            Company Name: Arda Rei Energoinvest, New.Co.
            Year established: 2005
            Location: Prishtinë
            Contact Person: Mr. Afrim Ethemi, Executive Director
            Products: Electric fuses and associated fasteners
            Manpower Complement: 26 regular workers
            Contact information:     Tel. 044 122 161; 038 540 622
                                     E-mail: arda_rei@yahoo.com
                                     URL: www.ardarei.com

     2
                                           ELSAM


                                                                                52
                             COMPANY PROFILE

    Company Name: Elsam, New.Co.
    Year established: 2006
    Location: Ferizaj
    Contact Person: Mr. Sami Musliu, Executive Director
    Products: carrying steel structures, heat exchanger, storage tanks for
              petrol and central heating
    Manpower Complement: 35 regular workers
    Contact information:    Tel. 0290 20 197; 044 121 657
                            E-mail: info@elsam-ks.com
                            URL: www.elsam-ks.com
3
2                               KUK COMERC
                            COMPANY PROFILE

    Company Name: Kuk Comerc
    Year established: 1979
    Location: Sharr-Prizren
    Contact Person: Naser Arifi, Executive Director
    Products: Metal furniture, decorative ornaments for balconies, garden
    doors and fences, heating equipments, market shelves
4   Manpower Complement: 50 regular workers
2   Contact information:    Tel. LLAMKOS
                                 044 500 950; 502 368
                            E-mail: kukcomerc@hotmail.com
                            COMPANY PROFILE
                            URL: www.kukcomerc.com
    Company Name: Llamkos, New.Co.
    Year established: 2006
    Location: Vushtri
    Contact Person: Mr. Luan Berisha, Executive Director
    Products: Zinc plated metal - longitudinal cut, zinc plated metal –
              rolls and boards, profiled plate metal
    Manpower Complement: 350 regular workers
    Contact information:    Tel. 044 506 740; 028 71 211; 70 653
                            E-mail: lion_berisha@hotmail.com
                                     office@llamkos.com
                            URL: www.llamkos.com

5
2                      MERIDIAN ENERGOINVEST
                             COMPANY PROFILE

    Company Name: Meridian Energoinvest, New.Co.
    Year established:
    Location: Prishtina                                                      53
    Contact Person: Mr. Agron Zhubi, Executive Director
    Products: Distributive and industrial transformer stations, switch
              cable panels
6
                          OSA TERMOSISTEM
                           COMPANY PROFILE

    Company Name: Osa Termosistem, New.Co.
    Year established: 2005
    Location: Rahovec
    Contact Person: Mr. Selami Osa, Executive Director
    Products: Condensers for cooling systems, evaporators for cooling
              systems, refrigerated display cases with drawers, storage
              compartment, ventilated cooling (for sweets, meat and
              other food
7   Manpower Complement: 54 regular workers
2   Contact information:    VEGELTORJA PLUS
                           Tel. 044 119 710
                           E-mail: osatermosistemi@hotmail.com
                            COMPANY PROFILE

    Company Name: Vegeltorja Plus, NewCo
    Year established: 2006
    Location: Ferizaj
    Contact Person: Mr.Kemal Zariqi, Executive Director
    Products: Standard and special equipment tools and dies
    Manpower Complement: 38 regular workers
    Contact information:   Tel. 044-124 886
                           E-mail: f.veglave.ferizaj@yahoo.com
                           URL:

8
                                  VINEX
                           COMPANY PROFILE

    Company Name: Vinex, NewCo
    Year established: 2006
    Location: Viti
    Contact Person: Mr. Ilir Rexha, Executive Director
    Products: Fasteners of all types with Ø 2mm-16mm (bolts, screws
    and nuts)                                                             54
    Manpower Complement: 43 regular workers
    Contact information:     Tel. 044 137 570; 038 223 408
9
2                         GORENJE ELEKTROMOTORI
                                COMPANY PROFILE

        Company Name: Gorenje Elektromotori
        Year established: 1972
        Location: Gjakovë
        Contact Person: Mr. Ali Buza, Executive Director
        Products: Electric motors for white appliances
        Manpower Complement: 250 regular workers
        Contact information:    Tel. 0390 24 306
                                E-mail: gorenjeelektromotori@hotmail.com
 10                             URL:
                                  KOSOVA STEEL
                                COMPANY PROFILE

        Company Name: Kosova Steel, NewCo
        Year established: 2006
        Location: Pejë
        Contact Person: Mr. Blerim Krasniqi, Executive Director
        Products: Automotive parts, mechanical details, other metallic forms
        Manpower Complement: 66 regular workers
        Contact information:   Tel. 044 145 836
                               E-mail: blerim@kosovasteel.com
                               URL: www.kosovasteel.com


11
                                 TIMI KOSOVA
                                COMPANY PROFILE

        Company Name: Timi Kosova, NewCo.
                                     TEKNIKU
        Year established: 2005
                               COMPANY PROFILE
        Location: Malisheve, Prizren
        Contact Person: Refki Krasniqi, Executive Director
      Company Name: Tekniku
        Products: Electric counters, prepay systems for electrical (household)
      Year established: 1983
        systems
      Location: Gjakovë
        Manpower Complement: 30 regular workers
                                Tel.: Executive Director
      Contact Person: Qemajl Lluka, 044 204 811:506 432
        Contact information:                                                   55
      Products: Firetech equipment
                                E-mail: timikosova@yahoo.com
      Manpower Complement: 6 regular workers
                                URL:
12
                                 INTER STEEL
                              COMPANY PROFILE

     Company Name: Inter Steel
     Year established: 1993
     Location: Prishtina
     Contact Person: Hilmi Reka
     Products: profiles for steel construction, steel pipes for central
     heating systems
     Manpower Complement: 13 regular workers
     Contact information:     Tel. 038 245 225
                              E-mail: intersteel2003@yahoo.com
13
                                DAIJA METAL
                              URL:
                              COMPANY PROFILE

     Company Name: Daija Metal
     Year established: 1968
     Location: Gjakovë
     Contact Person: Pashë Daija, Executive Director
     Products: Heating & baking stoves, trade shelves, cans, chimney
     covers, ventilation pipes for chimneys, grills
     Manpower Complement: 20 regular workers
     Contact information:     Tel.: 044 123 002; 0390 26 328
                              E-mail: daijametal@hotmail.com
                              URL:

14
2                        FABRIKA E RADIATORVE
                              COMPANY PROFILE

     Company Name: Fabrika e radiatorve, NewCo.
     Year established: 2006
     Location: Gjilan
     Contact Person: Mr. Ilir Rexha, Executive Director
     Products: heating radiators with water
     Manpower Complement: 110 regular workers
     Contact information:     Tel.: 038 223 408
                              E-mail: engoffice@yahoo.com
                              URL:                                        56
 15                         GORENJE NITI-TIKI
                               COMPANY PROFILE

        Company Name: Gorenje Niti-Tiki
        Year established: 2000
        Location: Prishtine
        Contact Person: Mr. Fatmir Kadriu, Executive Director
        Products: sanitary boilers up to 80L
        Manpower Complement: 25 regular workers
        Contact information:    Tel.: 044 120 711
                                E-mail:
                                URL:
 16
 2                                  ASLLANI
                               COMPANY PROFILE

       Company Name: Asllani
       Year established: 2000
       Location: Prishtine
       Contact Person: Mr. Hasim Asllani, Executive Director
       Products: Water and petrol tanks, collectors for heating systems,
       carrying steel constructions
       Manpower Complement: 16 regular workers
       Contact information:     Tel.: 044 175 555
                                E-mail:
                                URL:
17
                                      FERAL
                             COMPANY PROFILE

      Company Name: Feral
      Year established: 2000
      Location: Gjakove
      Contact Person: Hasan Kadriqeli, Executive Director
      Products: Market shelves, electric baking round stove from aluminum
      sheet, cabinets for electrical counters
      Manpower Complement: 16 regular workers
      Contact information:     Tel.: 044 123 097
                               E-mail:
                               URL:
                                                                            57
18
                                        METALI
                               COMPANY PROFILE

      Company Name: Metali
      Year established: 2001
      Location: Prishtinë
      Contact Person: Mr. Kushtrim Hoxha, Executive Director
      Products: Petrol and water storage tanks, collectors for heating
      systems, central heating furnaces with solid fuel and petrol, sanitary
      boilers, steel carrying constructions
      Manpower Complement: 28 regular workers
 19
      Contact information:     Tel. 044 157 436
                               E-mail: JAKOVA
                               URL:
                                  COMPANY PROFILE

        Company Name: Jakova
        Year established: 1996
        Location: Gjakove
        Contact Person: Musa Vula, Executive Director
        Products: Cabinets for electrical counters, angular and circular gutter
        pipes, metallic cupboards
        Manpower Complement: 9 regular workers
        Contact information:    Tel. 0390 25 853
                                E-mail: binvula@gmail.com
                                URL:
 20
 2                             FONDERIA ARGONI
                                 COMPANY PROFILE

        Company Name: Fonderia Argoni
        Year established:
        Location: Ferizaj
        Contact Person: Jahir Osmani, Executive Director
        Products: Manholes
        Manpower Complement: 8 regular workers
        Contact information:   Tel.: 044 166 237
                               E-mail: fonderia_argoni@yahoo.com
                               URL:

 21
                                       BENCOM

                                                                                  58
                             COMPANY PROFILE

     Company Name: Bencom
     Year established: 1979
     Location: Ferizaj
     Contact Person: Mr. Enver Behluli, Executive Director
     Products: Sanitary products (bathtub, toilets, sink)
     Manpower Complement: 21 regular workers
     Contact information:   Tel. 044 366 337
                            E-mail:
                            URL:

22
                                 ALU-METAL
                             COMPANY PROFILE

     Company Name: Alu-Metal
     Year established: 1988
     Location: Pejë
     Contact Person: Mr. Haki Gashi, Executive Director
     Products: Aluminum doors and windows, steel structures
     Manpower Complement: 9 regular workers
     Contact information:   Tel. 039 31 208
                            E-mail:
                            URL:

23
2                                   FLAME
                             COMPANY PROFILE

     Company Name: Flame
     Year established: 2006
     Location: Prizren
     Contact Person: Mr. Xhemajli Berisha, Executive Director
     Products: steel tanks, expansion vessels, sanitary boilers
     Manpower Complement: 28 regular workers
     Contact information:    Tel. 029 31 089
                             E-mail:
                             URL:

24
2                                FRIGOTERM
                             COMPANY PROFILE
                                                                  59
     Company Name: Frigoterm
     Year established:
     Location: Prizren
25
                                     EKO
                             COMPANY PROFILE

     Company Name: Eko
     Year established: 2000
     Location: Gjakove
     Contact Person: Enver Rugova, Executive Director
     Products: Aluminum doors and windows, angular and circular gutter
               pipes
     Manpower Complement: 9 regular workers
     Contact information:   Tel. 0390 26 632
                            E-mail: eko@europe.com
                            URL:

26
2                                 SHLLAKU
                            COMPANY PROFILE
     Company Name: Shllaku
     Year established:
     Location: Gjakovë
     Contact Person: Mr. Albert Shllaku, Executive Director
     Products: Baking stoves with solid fuel, electric banking round stove
               from aluminum sheet, various elements from steel and
               aluminum sheet
     Manpower Complement: 12 regular workers
     Contact information:   Tel. 044 154 563
                            E-mail: shllakumetal@hotmail.com
                            URL:
27
2                                 TEKNIKU
                            COMPANY PROFILE

     Company Name: Tekniku                                                   60
     Year established: 1983
     Location: Gjakovë
28
                                LUX SPECIAL
                             COMPANY PROFILE

     Company Name: Lux Special
     Year established: 1990
     Location: Mamushë, Prizren
     Contact Person: Mr. Veli Mazreki, Executive Director
     Products: metal galvanizing
     Manpower Complement: 2 regular workers
     Contact information:   Tel. 044 307 754
                            E-mail:
                            URL:

29
                                   TORNO
                             COMPANY PROFILE

     Company Name: Torno
     Year established: 1993
     Location: Prishtina
     Contact Person: Mr. Avni Toplica, Executive Director
     Products: Various mechanical details by order (shafts, gears,
     cartridges, rings), decorative ornaments for balconies, garden doors
     and fences
     Manpower Complement: 11 regular workers
     Contact information:     Tel.: 044 115 102
                              E-mail: torno@hotmail.com
                              URL:

30
                            MERKURI COMPANY
                             COMPANY PROFILE

     Company Name: Merkuri Company, NewCo
     Year established: 2006
     Location:
     Contact Person: Orhan Haziri, Executive Director                       61
     Products: Electric heating elements for washing machine, electrical
     heaters up to 3 kW
ANNEX 3.

Table 6. Grouping of companies by products


    Company Name          Standard Final          Final Products &           Steel            Services
                             Products            Components/Semi          Constructions
                                                 Products by Order
1     Arda Rei        1. Low voltage high
      Energoinvest,   capacity fuses
      NewCo.          2. High voltage high
                      capacity fuses
2     Elsam,          1. Heat exchanger with    1. Garbage containers     1. Carrying      1.Assembling
      NewCo.          braced and steel          opened and closed         steel            of carrying
                      pipes,                    2. Mobile shops with      constructions    steel
                      2. Storage tanks for      quadrant and              for production   constructions
                      central heating 1-5m3     hexagonal base            plants and
                      3. Petrol storage tank    3. Equipment tools,       sport halls
                      1-1000m3                  shafts, gears, etc.
                                                4. Different metal
                                                works, as fences,
                                                stairs, footsteps, and
                                                other products by
                                                order
3     Kuk Comerc      1. Heating equipments     1. Metal furniture
                                                2. Decorative iron
                                                elements
                                                3. Market shelves
                                                4. Decorative
                                                ornaments for
                                                balconies, garden
                                                doors and fences

4     Llamkos,        1. Zinc plated metal -    Gutter pipes, phasonic
      NewCo.          longitudinal cut          elements, running
                      2. Zinc plated metal –    pipes, L-profile,
                      rolls and boards          angular channels,
                      3. Profiled plate metal   regulation (control)
                                                valve, angles,
                                                segmental bow,
                                                circular branches, roof
                                                plates, spiral pipes,
                                                profiled plate metal,
                                                wind shoulders,




                                                                                                62
                                                garage




5   Meridian        1.Distributive and          3.Steel cabinets for
    Energoinvest,   industrial transformer      wardrobe, offices
    NewCo.          stations:
                    -armored metallic
                    transformer stations
                    250-1600kVA
                    - in wall transformer
                    stations with housing
                    1600ktVA
                    - pile type transformer
                    stations up to 400kV
                    2.Switch cable panels:
                    - distributive panels for
                    industry
                    - panels for domestic
                    installation
6   Osa             1. Condensers for                                      1.Repairing of
    Termosistemi,   cooling systems                                        the condensers
    NewCo.          2.Evaporators for                                      for cooling
                    cooling systems                                        systems
                    3. Refrigerated display
                    cases with drawers,
                    storage compartment,
                    ventilated cooling (for
                    sweets, meat and
                    other food)
7   Vegeltorja      1.Standard and special      1. Production by order
    Plus, NewCo.    equipment tools             of shafts, gears,
                                                cartridges, laces, etc.)
8   Vinex,          Fasteners of all types                                 Galvanic
    NewCo.          with Ø 2mm-16mm                                        covering
                    (bolts, screws and                                     protection of
                    nuts)                                                  metals with
                                                                           Zn,Cu,Ni,Cr.




                                                                                 63
9    Gorenje          1.Single phase             1.Stator/rotor for
     Elektromotori,   asynchronic electric       hermetic compressor
     JSC.             motors for washing         motors of refrigerators
                      machine
                      2.Single and three-
                      phase asynchronic
                      electric motors for
                      industrial applications
                      IEC up to 1,5 kW

10   Kosova Steel,                               1. Automotive parts
     NewCo.                                      (vehicle chassis, long
                                                 beam of chassis, front
                                                 and rear seats
                                                 skeletons, exhaust
                                                 system, axle housing)
                                                 2. Mechanical details
                                                 (pivot/axis, tools for
                                                 pressing machines,
                                                 various mechanical
                                                 details),
                                                 3. Other metallic forms

11   Timi Kosova,     1.Electronic counter for
     NewCo.           electric energy
12   Inter Steel                                 1.Metalic pipes for
                                                 metallic constructions
                                                 with diameter up to
                                                 114mm
                                                 2.Metalic pipes for
                                                 heating systems with
                                                 diameter up to 114 mm
                                                 3. Metallic boxes for
                                                 metallic constructions
                                                 up to dimension
                                                 125x125

13   Daija Metal      1.Heating and baking       1. Cans
                      stoves                     2.Chimney covers
                                                 3.Ventilation ducts and
                                                 grills
                                                 4.Trade shelves
                                                 5. Electric banking
                                                 round stove from
                                                 aluminum sheet




                                                                           64
14   Fabrika e       1.Steel panel radiators
     radiatoreve,    type 22/600/x
     NewCo.          2.Steel panel radiators
                     type 22/500/ x
                     3.Steel panel radiators
                     type22/900/x
                     4.Steel panel radiators
                     type 33/300/x

15   Gorenje Niti-   1.Sanitary boilers up to
     Tiki            80 L
16   Asllani         1.Water and oil tanks      1. Metallic elements by   1. Carrying
                     up to 10m3                 order                     steel
                     2.Collectors for heating                             constructions
                     systems                                              for production
                                                                          plants and
                                                                          sport halls
17   Feral                                      1. Market shelves
                                                2.Electric banking
                                                round stove from
                                                aluminum sheet
                                                3.Cabinets for
                                                electrical counters

18   Jakova                                     1.Cabinets for
                                                electrical counters
                                                2.Angular and circular
                                                gutter pipes up to 0.55
                                                mm thickness
                                                3.Metalic cupboards
19   Eko             1.Aluminium doors and      1.Angular and circular    1.Aluminium-
                     windows                    gutter ducts up to 0.55   glass facades
                                                mm thickness              for buildings
20   Foundry         1. Manhole
     Argoni
21   Ben Com         1.Sanitary products
                     (bathtubs, toilets,
                     sinks)
22   Alu-Metal       1.Aluminium doors and      1. Production of steel    1. Carrying
                     windows                    elements by order         steel
                                                                          constructions
                                                                          for production
                                                                          plants and
                                                                          sport halls




                                                                                           65
23   Flame       1.Steam tanks for                                                  1.Installation of
                 heating and                                                        water heating
                 technological                                                      systems
                 application up to 10m3
                 2.Expanding vessel up
                 to 5m3
                 3.Tank for depositing
                 air, water, oil up to
                 25m3
                 4. Sanitary boilers with
                 electric heater and
                 thermo exchanger with
                 water 90C/70C up to
                 5000L.
24   Frigoterm   1.Condensers and
                 evaporators for
                 refrigerators
25   Metali      1. Petrol and water                               1. Carrying      1.Assembling
                 storage tanks up to                               steel            of carrying
                 10m3 2.Collectors for                             constructions    steel
                 heating systems                                   for production   constructions
                 3.Central heating                                 plants and
                 furnaces with solid fuel                          sport halls
                 and petrol up to
                 750kW
                 4. Sanitary boilers up
                 to 80L.
26   Shllaku                                1.Baking stoves with
                                            solid fuel
                                            2.Electric banking
                                            round stove from
                                            aluminum sheet
                                            3.Various elements
                                            from steel and
                                            aluminum sheet

27   Tekniku     1.Fire prevention
                 equipments by powder
                 and CO2 with capacity
                 from 3 Kg to 20 Kg




                                                                                          66
28   Lux-Special                                                         1.Galvanization
                                                                         with Zn,Cu,Ni
                                                                         of metallic
                                                                         products up to
                                                                         1300 mm with
                                                                         surface
                                                                         galvanized
                                                                         thickness 24
                                                                         microns
                                                                         2.External
                                                                         galvanization
                                                                         of metallic
                                                                         products with
                                                                         internal
                                                                         access,
                                                                         minimum
                                                                         50mm
29   Torno                                    1. Various mechanical
                                              details by order
                                              (shafts, gears,
                                              cartridges, rings, etc.)
                                              2.Decorative
                                              ornaments for
                                              balconies, garden
                                              doors and fences
30   Merkuri       1. Electric heating
     Company       elements for washing
                   machine
                   2. Electrical heaters up
                   to 3 kW




                                                                              67
68
ANNEX 4.

Table 7. Grouping of companies by technologies/processes
Company Name                                                                      TECHNOLOGICAL PROCESSES
                      Process 1 - Standard            Process 2 -             Process 3 -             Process 4 - Other            Process 5 –
                        Production Lines               Stamping              Assembly Line                                       Tools workshop
1   Arda Rei                                      STAMPING                ASSEMBLING LINE         STEEL SHEET
    Energoinvest,                                 1.Stamping of steel     Semi-automatic          PROCESSING
    NewCo.                                        sheet according to      assembling line for     1. Execution of details
                                                  designed forms at       mounting of the fuses   seams at manual presses
                                                  manual presses 45t-     patrons on porcelain    25t-40t
                                                  60t.                    insulators              2.Canals fastening at
                                                                                                  automatic hydraulic press
                                                                                                  80t
                                                                                                  TESTING LINE
                                                                                                  1. Testing of the fuses in
                                                                                                  special equipment
                                                                                                  2.Dielectric testing of the
                                                                                                  insulation materials in
                                                                                                  special equipment
2   Elsam,          THERMIC EXCHANGER             STAMPING                                        WELDING                       TOOL
    NewCo.          1.Semi-automatic line for     1.Semi-automatic                                1.Manual welding line of      WORKSHOP
                    exchanger core                line for vertical                               tanks by electric welding     1.Universal lathe for
                    2. Semi-automatic line for    stamping of steel                               2.Testing line by pressure    diam. max 550mm
                    forming and welding of        sheet 80t,125t                                                                2.Circular lathe
                    exchanger cylindrical coil    2.Semi-automatic                                                              FI800
                    3.Manual line for             line for deepening of                                                         3.Grinding machine
                    assembling and testing        tanks side arches at                                                          for external circular
                                                  vertical press 650t                                                           surfaces
                                                                                                                                4.Quenching oven
3   Kuk Comerc      METALIC JOINERY               STAMPING                ASSEMBLING              DYEING
                    1.Manual line for             1.Succession line for   1. Manual assembling    1.Cleaning of grease by
                    preparing of metallic         stamping of cabinets    line of metallic        chemicals at progressive
                    figures.                      metallic elements by    cabinets                tank
                    2. Manual line of             non-progressive                                 2.Dyeing of elements by
                    malleability and forming of   vertical presses-12                             antirust material
                    metallic figures              vertical presses from                           3.Dyeing by metallic paint
                    3. Manual line of            25T to 80T.                                   spraying
                    assembling and
                    ornamentation of metallic
                    joinery
4   Llamkos,        PROFILING OF STEEL                                                         HOT ZINCTING
    NewCo.          SHEET                                                                      1.Spreading and cleaning
                    1. Semi-automatic line for                                                 line
                    cutting of steel sheet                                                     2.Automatic line of hot
                    according to programmed                                                    zincing line
                    dimensions.                                                                3.Automatic line for folding
                    2. Automatic line for                                                      of coils and packing
                    profiling of zinced or
                    plasticized steel sheet
                    according to programmed
                    profiles
                    PROCESSING OF
                    STEEL SHEET
                    1.Steel sheet cutting
                    according to designed
                    forms at manual presses
                    25t-80t
                    2.Execution of details
                    seams at manual presses
                    25t-40t
5   Meridian                                     STAMPING               ASSEMBLING OF          PLASTIFICATION
    Energoinvest,                                1.Stamping of steel    TRANSFORMER            1.Plastification of stamping
    NewCo.                                       sheet up to 2.5 mm     CABINS                 and protected details of
                                                 thickness at non-      1.Assembling of        steel sheet with polyester
                                                 progressive            cabins frame           powder by electrostatic
                                                 mechanic presses       construction           technology
                                                 40T, 65T, 80T, 125T,   2. Assembling of       RUST PROTECTION
                                                 200T.                  commutation and        1. Cleaning of stamping
                                                 2. Bending of steel    controlling elements   steel sheet from grease
                                                 sheet at mechanic      and cable panels       2. Steel sheet
                                                 presses 15T, 25T,      3.Assembling of        galvanization by
                                                 40T.                   covering construct     galvanized protection Zn




                                                                                                                              70
6   Osa             PIPES BENDING                STAMPING              ASSEMBLING OF            PLASTIFICATION
    Termosistemi,   1.Bending of cooper          1.Stamping of steel   REFRIGERATED             1.Plastification of stamping
    NewCo.          pipes, diameter FI 6mm-FI    sheet up to 2.5 mm    DISPLAY CASE             and protected details of
                    28mm according to            thickness at non-     1.Assembling of          steel sheet with polyester
                    thermo exchanger             progressive           refrigerators frame      powder by electrostatic
                    programme at hydraulic       mechanic presses,     construction             technology at automatic
                    presses 125T                 60T, 80T, 125T,       2.Assembling of          line for dyeing and
                    2.Inserting of aluminum      200T.                 refrigerator steamer     plasticization
                    thermo plates in inserting   2. Bending of steel   3.Assembling of
                    automatic machine            sheet at mechanic     refrigerator condenser
                                                 presses 80T, 40T.
7   Vegeltorja                                                                                                                 LINE OF
    Plus, NewCo.                                                                                                               EROSIMATES
                                                                                                                               1.Coordinative
                                                                                                                               erosimates with
                                                                                                                               electrodes
                                                                                                                               LINE OF LATHES
                                                                                                                               1.Universal lathe FI
                                                                                                                               250; L=1500
                                                                                                                               2.Universal lathe FI
                                                                                                                               350; L=1500
                                                                                                                               3.Universal lathe FI
                                                                                                                               550;L=2000
                                                                                                                               4.Coordinativelathe
                                                                                                                               CNC
                                                                                                                               FI 350;L=1500
                                                                                                                               LINE OF MILLING
                                                                                                                               MACHINES
                                                                                                                               1.Single-axle milling
                                                                                                                               machine FI 550
                                                                                                                               2. Double-axle
                                                                                                                               milling machine FI
                                                                                                                               500     3.Triple
                                                                                                                               milling machine FI
                                                                                                                               500
                                                                                                                               4.Coordinative
                                                                                                                               milling machine FI
                                                                                                                               400
                                                                                                                               GRINDING LINE

                                                                                                                                         71
                                                                                                        1.Grinding machine
                                                                                                        for cylindrical
                                                                                                        grinding for external
                                                                                                        surfaces with scale
                                                                                                        Q6
                                                                                                        2.Grinding machine
                                                                                                        for cylindrical
                                                                                                        grinding for internal
                                                                                                        surfaces with scale
                                                                                                        Q6
                                                                                                        3.Grinding machine
8   Vinex, NewCo.    LINE FOR                                             GALVANIZATION LINE            TOOL
                     BOLTS,SCREWS,NUTS                                    1.Line for phosphates         WORKSHOP
                     1.Machine for cutting of                             LPW                           1.Universal lathe for
                     angles of screw                                      2.Line for zincing            diam. max 550mm
                     2.Machine for bolt                                   3.Line for Cu, Ni, Ms, Cr     2.Circular milling
                     washing                                              galvanization                 machine FI800
                     3.Machine with two boxes                                                           3.Grinding machine
                     for minting the screws                                                             for circular external
                     4.Machine for minting nuts                                                         surfaces
                                                                                                        4.Quenching oven
9   Gorenje          LINE FOR COILS               STAMPING                METAL PROCESSING
    Elektromotori,   WINDING                      1.Progressive press     LINE
    JSC.             1.Special machine for        for stamping of steel   1.Special lathe by copying
                     coils winding with cooper    sheet                   for cutting and carving of
                     insulated wire up to         125T,400T,650T          axle
                     0.8mm                        2.Non-progressive       2.Lathe CNC for external
                     2.Special automatic          press 80T for steel     cylindrical surface with
                     machine CNC for coils        sheet stamping          diameter up to 100mm
                     winding with copper                                  FOUNDRY LINE
                     insulated wire up to                                 1.Press for casting of AlSi
                     0.5mm                                                products
                                                                          150T,200T,300T,400T,630
                                                                          T




                                                                                                                  72
10   Kosova Steel,   STEEL SHEET                                      WELDING LINE
     NewCo.          STAMPING LINE                                    1.Semiautomatic line for
                     1.Nonprogesive                                   steel welding
                     press for stamping                               2.Testing line by pressure
                     the steel sheet                                  STEEL INFLEXION LINE
                     80T,125T,200T,250T                               1.Steel pipe inflexion
                     ,400T,630T                                       machines up to 40 mm
                     2.Press for arch                                 diameter
                     forms of steel sheet                             METALOGRAPHY
                     2500T,4000T                                      LABORARTORY
                                                                      1.Laboratory for
                                                                      metallographic testing
11   Timi Kosova,                           ASSEMBLY LINE             TESTING LINE
     NewCo.                                 1.Line for mounting       1. Electronic equipment for
                                            (connection, welding)     testing the electronic
                                            the electrical elements   counter
                                            for electronic counter




                                                                                                    73
12   Inter Steel   PIPES LINE
                   1.Machine for cutting of
                   steel sheet up to
                   4mm;L=6m
                   2.Machine for bending of
                   steel sheet up to
                   4mm;L=6m
                   3.Machine for seam
                   welding of steel sheet
                   "U" PROFILES LINE
                   1.Machine for cutting of
                   steel sheet up to
                   4mm;L=3m
                   2.Machine for bending of
                   steel sheet up to
                   4mm;L=3m
                   3.Machine for seam
                   welding of steel sheet up
                   to 4mm;L=3m
                   "L" PROFILES LINE
                   1.Machine for cutting of
                   steel sheet up to
                   5mm;L=3m
                   2.Machine for bending of
                   steel sheet up to
                   5mm;L=3m
13   Daija Metal   LINE FOR STOVES
                   1.Mechanic machine for
                   circular cutting of
                   aluminum sheet 0.55 mm;
                   diameter 1200 mm
                   2.Presses 40T for cutting
                   of steel sheets up to
                   8mm;L=1.2m
                   3.Mecha




                                               74
14   Fabrika e       LINE FOR PANEL
     radiatoreve,    RADIATORS
     NewCo.          1. Automatic line for
                     cutting of steel sheet up to
                     1.0mm thickness;
                     L=900mm
                     2.Automatic line for
                     forming the steel panels
                     3.Automatic line for
                     welding
15   Gorenje Niti-                                  ASSEMBLING
     Tiki                                           Manual assembling
                                                    line for mounting of the
                                                    electric heaters and
                                                    commanding electrical
                                                    elements in the boiler
16   Asllani         TANKS LINE (water & oil
                     tanks)
                     1.Machine for cutting of
                     steel sheet up to 12mm
                     L=1,5m
                     2. Machine for bending of
                     steel sheet up to diameter
                     1.5 m and 12 mm
                     thickness.
                     3.Machine for deepening
17   Feral           BAKING LINE
                     1.Mechanic machine for
                     cutting of steel sheet with
                     thickness 1.2mm; L=1.2m
                     2.Mechanic machine for
                     bending of steel sheet
                     1.2mm;L=1.2m .
                     3.Machine for deepening
                     of steel sheet




                                                                               75
18   Jakova    CABINET AND DUCT
               LINE
               1.Mechanic machine for
               bending of steel sheet
               1.2mm; L=1.2m .
               2.Machine for deepening
               of steel sheet with
               diameter 400 mm and
               2.5mm thickness
19   Eko       GUTTER PIPE LINE
               1.Mechanic machine for
               bending of steel sheet
               1.2mm; L=1.2m .
               2.Machine for deepening
               of steel sheet with
               diameter 500 mm and
               1.5mm thickness
               3 ALUMINIUM LINE
               1.Electric machine for
               cutting of aluminum sheet
               with thickness
               1.8mm;L=4m
20   Foundry   LINE FOR MATERIAL
     Argoni    DIE CASTING
               1. Oven of 400 Kg for
               cast-iron die casting

21   Ben Com   BATHTUBS                    MOULDS PREPARATION
               PRODUCTION LINE             LINE
               1. Manual production of     1. Preparation of moulds-
               bathtubs by polyester       negatives of bathtubs by
               resin film                  coping.
                                           DYEING LINE
                                           1. Dyeing of tubs by
                                           spraying
                                           2. Drying of tubs in ovens
                                           at temperature 180ºC



                                                                        76
22   Alu-Metal   TANKS LINE (water, oil
                 tanks)
                 1.Machine for cutting of
                 steel sheet up to 12mm
                 L=1,5m
                 2. Machine for bending of
                 steel sheet up to diameter
                 1.5 m and 12 mm
                 thickness.
                 ALUMINIUM LINE
                 1.Electric machine for
                 cutting of aluminum sheet
                 with thickness
                 1.8mm;L=4m
23   Flame       TANKS LINE (water & oil
                 tanks)          1.Presses
                 40T for cutting of steel
                 sheets up to
                 10mm;L=1.5m
                 2.Press 26T for bending
                 of steel sheet up to
                 10mm;L=1.5m
                 3.Press 450T for arch
                 forms up to diameter
                 2000mm
24   Frigoterm                                STAMPING OF
                                              STEEL SHEET
                                              1.Stamping of steel
                                              sheet up to 2.0 mm
                                              thickness at non-
                                              progressive
                                              mechanic presses,
                                              80T, 125T
                                              2. Bending of steel
                                              sheet at mechanic
                                              presses 80T.




                                                                    77
25   Metali        TANKS LINE(water & oil
                   tanks)
                   1.Presses 60T for cutting
                   of steel sheet up to
                   12mm;L=1.2m
                   2.Press 40T for bending
                   of steel sheet up to
                   12mm;L=1.2m

26   Shllaku       BAKING HEATERS LINE
                   1.Mechanic machine for
                   cutting of steel sheet with
                   thickness 1.2mm;L=1.2m
                   2.Mechanic machine for
                   bending of steel sheet
                   1.2mm;L=1.2m
                   3.Mechanic machine for
                   deepening of aluminum
                   sheet

27   Tekniku       LINE FOR FIRE                 DYEING LINE
                   PREVENTION                    1. Electrostatic dyeing line
                   EQUIPMENT
                   1.Equipment for electric
                   welding 250A
                   2.Equipment for pulling
                   out of dust from dishes at
                   6 bar pressure
                   3. Testing equipment
28   Lux-Special   EXTERNAL
                   GALVANIZATION LINE
                   1.Line for galvanization of
                   external surfaces up to
                   diameter 50 mm with
                   Cu,Ni,Mc,Cr, cadmium




                                                                                78
29   Torno                                 LINE OF LATHES
                                           1.Universal lathe FI
                                           200; L=1200
                                           2.Univesal lathe FI
                                           150;L=1000
                                           3.Universal lathe FI
                                           550;L=2000
                                           LINE OF MILLING
                                           MACHINES
                                           1.Single-milling
                                           machine FI 550
                                           2. Double-milling
                                           machine FI 500
                                           GRINDING LINE
                                           1.Grinding line for
                                           cylindrical grinding
                                           of external surfaces
                                           with scale Q6
30   Merkuri   HEATERS LINE
     Company   1.Machine for oval
               forming of steel heater
               envelope
               2.Machine for putting the
               ceramic insulator in the
               heater




                                                     79
ANNEX 5.

Table 8. List of companies in process of export negotiations
       Companies                  Export                Business          Country
                               Arrangement              Partner
 1   Arda Rei              High voltage fuses       Termoelektrana-    Serbia
     Energoinvest                                   Lazarevac
                           Barter agreement of      Nikdim             Bulgaria
                           electric fuses with
                           porcelain isolators
                           Transfer of Know-        Rade Konč ar       Croatia
                           How for producing of
                           contactors and
                           supplying of mother
                           company
 2   Meridian              Transformer stations     EMO Ohrid          Macedonia
     Energoinvest          up to 630KVA             TSN                Slovenia
 3   OSA TERMOSISTEM       Condensers for cooling   Klimaoprema        Croatia
                           systems HVAC             Uniklima           B&H

                           Generators for           Dorin              Italy
                           refrigerator systems
 4   Vegeltorja Plus       Special tools            Centralhydraulic   Germany
                                                    Novtech            Germany
                                                    Mareli             Italy
 5   Gorenje               Electric motors for      Gorenje-Velenje    Slovenia
     Elektromotori         washing machines
                           Shafts for generators    Mareli             Italy
 6   Asllani               Transfer of Know-        Elvial             Greece
                           How for producing of
                           aluminium profiles
                           and supplying of
                           mother company

								
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